Oman Economic Review – July 2019

DP World can build on the solid
platform of Topaz achievements to
date, ensuring best practice safety,
continuously improving standards,
security, opportunity and growth in the
interests of all stakeholders: employees,
partners, clients and customers,
bankers, bond holders, professional
advisers and other service providers in
the whole Topaz community, in its key
markets around the world.

Renaissance has announced and
pursued a liquidity event for Topaz over
the past year, including the possibility of
a sale of equity. This transaction fulfills
a number of Renaissance objectives set
out in that strategy such as to de-risk
the company; de-leverage the balance
sheet; meet pending capital obligations
and strengthen liquidity.

The first priority shall be to de-leverage,
including the SCPEL obligation, a
repurchase of the perpetual notes and
the reduction of borrowing.

DP World group chairman and CEO,
Sultan Ahmed bin Sulayem, said, “We
are pleased to announce the acquisition
of Topaz, which further strengthens
DP World’s position as a world-leading
operator in maritime logistics services.
In recent years, we have been investing
selectively in the marine logistics
sector in companies with high revenue
visibility, consistent track record
and strong customer relationships.
This latest acquisition complements
the operations of our P&O Maritime
Services (POMS) business, which
maintains over 300 vessels globally.
Much like DP World, Topaz has evolved
its business, offering customers a range
of logistics solutions and helping the
company outperform the industry. We
believe that this innovative approach,
together with the increased scale, will
allow the combined Topaz and P&O
Maritime Services business to drive
efficiencies and earnings growth.
Furthermore, this new partnership
opens the door for DP World to explore
new business areas more extensively,
for example, increasing transit volumes
through Azerbaijan within the East-
West trade corridor.”

Indicative proceeds and utilisation of

the divestment proceeds

RO Mn US$ Mn

Proceeds

Enterprise Value 415.0 1,078.9

Receipt of Shareholder loan 30.2 78.6

Total Proceeds 445.2 1,157.5

Utilisation

Net Debt (Estimated) (300.6) (781.4)

Settlement of SECPEL (38.9) (101.0)

Repurchase of Perpetual Notes (48.3) (125.5)

Repayment of loans (40.2) (104.5)

Estimated Transaction Expenses

(Transaction Incentive and Professional Fees for Legal and

Financial Advisors)

(5.2) (13.5)

Key details of the proposed transaction:

Buyer DP World

Enterprise Value RO415mn

Indicative Profit from Discontinued Operations

at Consolidated Level RO6mn

Expected Financial Closure Q3 2019

Samir J Fancy, chairman, Renaissance,

said, ”We are happy with the outcome

for Topaz – we acquired a small

regional OSV player almost 15 years

ago and transformed it into a global

leader with a unique market positioning

and reputation. Thanks to a prudent

and considered business model

focussed on excellence of service, long

term strategic customer relationships

and contracts, we have been able

to successfully navigate one of the

toughest crises in the oil industry. This

transaction fits our announced strategic

intentions and sets a solid platform

for growth in our services solutions

and facilities management businesses,

which are less capital intensive, and

offer significant opportunity to build

scale and value.”