GO
Loading...

Enter multiple symbols separated by commas

Dubai Buys $424 Million Singapore Shipyard Firm

Government-owned Dubai Drydocks World said on Monday it had agreed to take over 70% of Singaporean shipyard operation Pan-United Marine in a deal valuing the company at S$647.9 million (US$424 million).

Dubai Drydocks World said investors holding 70% of Pan-United's stock have agreed to its S$2.38 per share cash offer.

Shares in Pan-United closed at S$2.31 on May 24 and the firm has 272.22 million shares outstanding, according to Reuters data.

This is the first global acquisition of Dubai Drydocks World, a unit of Dubai World, a holding company that manages projects for the Dubai government.

Dubai World also runs port operator Dubai Ports World, which acquired British rival P&O, and investment house Istithmar, which bought a stake in bank Standard Chartered last year.

"Acquiring a controlling stake in Pan-United Marine is integral to our investment strategy for Asia," Dubai World Chairman Sultan Ahmed Bin Sulayem said in the statement.

Dubai Drydocks intends to retain "substantially all" employees of Pan-United, said HSBC, which arranged the deal, in an offer document.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Dr. Palmer paid $50,000 to hunt lion Cecil

    Minnesota dentist Dr. Walter Palmer was one of thousands who go to sub-Saharan Africa for trophy hunts. CNBC's Robert Frank reports Dr. Palmer said he did not know Cecil was famous or the hunt was illegal.

  • Moving fast to partner with Netflix: Marriott CEO

    Marriott International CEO, Arne Sorenson, discusses apprehension in the market, mergers, and business growth.

  • WiFi via drones

    Facebook wants to keep growing and has designed a drone that will provide Internet service in remote areas. CNBC's Julia Boorstin reports.