October 29, 2007
Dubai Drydocks swoops on Singapore's Labroy
Dubai World's Drydocks World, unit today announced its latest overseas acquisition by making a voluntary conditional cash offer for Labroy Marine Limited ("Labroy") of Singapore. The offer would involve a potential cash outlay of approximately$1.63 billion for an acquisition of all Labroy's shares on a fully diluted basis.
Labroy, incorporated in Singapore and listed on the Main Board of the Singapore Stock Exchange. is a marine construction and engineering group with core businesses in shipbuilding, ship repair, offshore rig construction and shipping. It has two full-service shipyards in Batam, Indonesia and a large and diversified fleet of vessels.
Drydocks World has received irrevocable undertakings from substantial shareholders of Labroy to accept the offer from Drydocks World in respect of approximately 65.49 per cent. of all the shares in Labroy in the aggregate.
The core strengths of Labroy are similar to those of Drydocks World, being ship repair, ship building and conversions. In addition Labroy is also engaged in construction of offshore rigs for use in the global oil and gas industry.
Welcoming the acquisition, Sultan Ahmed Bin Sulayem, Chairman, Dubai World, said: "The acquisition of Labroy has marked yet another milestone for Drydocks World in consolidating its position in the maritime industry worldwide. The acquisition of Labroy is integral to the Dubai World group's diversified strategic investment plans in Asia where several Asian states have experienced remarkable growth".
Geoff Taylor, CEO, Drydocks World, said: "The acquisition of Labroy, an established shipyard in Southeast Asia, is another well thought out strategic step in taking the expertise of the Drydocks World group of companies to the international stage. The senior management of Drydocks World intends to work closely with the senior management at Labroy to ensure a smooth handover of the business.We are also keen to safeguard continuity of operations. At this time, Drydocks World does not envisage making major changes to the business, redeploying assets, or discontinuing the employment of any of Labroy's employees."
"Following the close of the offer," added Mr. Taylor, Drydocks World will undertake a comprehensive review of Labroy's businesses to assist us in determining the optimal business strategy for Labroy."
Rashid Sheikh, Group Treasurer for Dubai World, said that "from a financing perspective, we are pleased to announce that we have successfully secured underwriting for this strategic acquisition through regional banks for the full amount of the general offer evidencing clear and continued support for Drydocks World's growth plans"
Drydocks World comprises Dubai Drydocks and Drydocks World-- Singapore (formerly known as Pan United Marine Limited). Dubai Drydocks also operates Platinum Yachts FZCO and Platinum Yacht Managements LLC, which are focused on the luxury craft business.