DP World says in talks to acquire Topaz Energy
DP World Plc is in discussions to acquire Renaissance Group subsidiary Topaz Energy and Marine in what would be the Dubai-based company’s first venture into the oil and gas sector.
‘We are aware of the recent speculation regarding a possible acquisition of Topaz Energy and can confirm that DP World is in discussions with the relevant parties in respect of this matter’, DP World said in a disclosure filed to the Dubai Financial Market on Sunday.
While negotiations are ongoing, there can be no certainty of a transaction, the world’s largest port operator said in its disclosure. ‘DP World will comply with all applicable regulatory requirements and update the market as and when appropriate’, it added.
Sky News reported earlier that a US$1.3bn deal could be announced in coming days, without specifying whether the valuation was referring to the equity or enterprise value of the transaction, according to a Bloomberg report. Deutsche Bank is advising DP World, while Rothschild & Co is advising Topaz, the report said.
Topaz Energy and Marine is a leading offshore support vessel company providing marine solutions to the global energy industry.
In a September 2018 statement to the Muscat Securities Market related to Topaz, Renaissance had said that Topaz continues to consider all strategic options, including inorganic and capital market transactions such as an offering of securities in the company. Renaissance then had said that it appointed professional advisors to guide it on options to reach the best decision.
DP World has been on an acquisition spree in the past 18 months, buying P&O Ferries and P&O Ferrymasters in Europe and Puertos y Logistica in Chile. It also purchased an additional stake in DP World Australia and invested through its joint ventures in Canada and India, according to the Bloomberg report.
DP World, which claims to be a leading enabler of global trade and an integral part of the supply chain, operates multiple yet related businesses – from marine and inland terminals, maritime services, logistics and ancillary services, to technology-driven trade solutions. It has a portfolio of over 150 operations in over 45 countries across six continents.