DP World denies reports on buyout

Says any party entering into deals with Djibouti government on terminal risks liability for damages

DP World yesterday denied reports that the government of Djibouti had offered to buy its 33 per cent stake in the Doraleh Container Terminal.

A DP World spokesperson said that any party entering into an agreement with the government of Djibouti with regards to the terminal would risk being liable for damages.

“Any party entering into any agreement or arrangement with the Djibouti government in respect [to] Doraleh Container Terminal … risks being liable in damages for interfering with DP World’s rights under its contract, which remains in force,” the spokesperson said.

‘Illegal act’

“We consider such action to be illegal, and will pursue our legal rights against any such third parties.”

The comments come after media reports earlier this week quoted the chairman of the Djibouti Ports and Free Zone Authority as saying that the Authority was ready to buy out DP World’s stake in the Djibouti terminal. A spokesperson for the Dubai-based ports operator reiterated that the “aggressive action” taken by the government of Djibouti to ban the company from operating the Doraleh terminal was illegal, which is why it filed a case with the Court of International Arbitration in London.

A DP World-owned entity designed, built and has operated the terminal pursuant to a concession awarded in 2006.

DP World share prices were trading at $22.50 yesterday, ending the day 0.44 per cent lower.