Dubai offers Dh6 billion for Singapore firm

DUBAI — Maritime holding company Drydocks World, a member of Dubai World, yesterday made a Dh6 billion (S$2.37 billion) voluntary-conditional cash offer for Labroy Marine Limited, an established shipyard in Singapore.

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By A Staff Reporter

Published: Tue 30 Oct 2007, 8:51 AM

Last updated: Sat 4 Apr 2015, 11:30 PM

Sultan Ahmed bin Sulayem, chairman of Dubai World, described the acquisition of Labroy as "integral" to his company, which is diversifying investment plans in Asian states that have remarkable growth.

"The acquisition of Labroy has marked yet another milestone for Drydocks World in consolidating its position in the maritime industry worldwide," he said in a Press statement yesterday.

The statement said Drydocks World has received "irrevocable undertakings" from a significant number of Labroy shareholders to accept the offer covering some 65.49 per cent of all the shares in Labroy.

Rashid Sheikh, group treasurer at Dubai World, said his company has "successfully secured underwriting for this strategic acquisition through regional banks for the full amount of the general offer".

Drydocks World CEO Geoff Taylor vowed to safeguard the continuity of operations at Labroy. He said the senior management teams of both companies would work closely for a smooth handover of the business.

"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," he stressed.

He said Drydocks World will make a comprehensive review of Labroy's businesses with an aim to mapping out future strategies when the offer is done.

The statement noted that both Labroy and Drydocks World have good track records in ship repair, building and conversions, and that Labroy is also engaged in the construction of offshore rigs the oil and gas industry.

It said that Labroy, Drydocks World-Singapore (formerly Pan United Marine Limited) and Dubai Drydocks have large skilled workforces and strong management teams.

It added that Dubai Drydocks also operates Platinum Yachts and Platinum Yacht Managements, which are into luxury craft businesses.

Incorporated in Singapore on April 14, 1980, Labroy is listed on the main board of Singapore Stock Exchange. It has two full-service shipyards on Indonesia's Batam island and a large and diversified fleet of vessels.

A Staff Reporter

Published: Tue 30 Oct 2007, 8:51 AM

Last updated: Sat 4 Apr 2015, 11:30 PM

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