DP World's offer to buy Topaz Energy approved by Oman's Renaissance Services
Shareholders back deal to sell 86.5% stake to Dubai ports operator
Oman's Renaissance Services said shareholders have approved a stake sale in Topaz Energy and Marine to DP World.
The shareholders approved the sale of a majority 86.5 per cent stake during a July 29 shareholders' meeting, Renaissance Services said on Tuesday in a filing to the Muscat stock exchange, where its shares are traded.
Earlier this month, DP World agreed to acquire Dubai-based oil services company Topaz Energy and Marine from Muscat-based Renaissance Services and Standard Chartered's private equity arm for an enterprise value of $1.08 billion (Dh3.96bn).
The deal, which is subject to regulatory approval, is expected to complete in the second half of the year, according to DP World.
The deal marks the UAE ports operator's first foray into the oil and gas sector. DP World has been on an investment spree since 2018 as its growth strategy evolves to include the wider logistics supply chain. It snapped up UK-based transport and logistics company P&O Ferries, Indian rail logistics company Kribhco Infrastructure and Chile ports operator Puertos y Logistica.
DP World's acquisition of Topaz Energy and Marine will expose the global ports operator to greater volatility given its first foray into the oil and gas industry, according to Moody's Investors Service.
The acquisition equates to about 7 per cent of DP World's 2018 earnings before interest, taxation, depreciation and amortisation (Ebitda), the credit rating agency said in a July report.
Updated: July 30, 2019 04:49 PM