The United Arab Emirates’ (UAE) global port operator Dubai Ports (DP) World said that it will continue defending its rights after Djibouti government nationalized Doraleh Container Terminal SA (DCT).
DP World said it will pursue “all legal means to defend its rights as a shareholder and concessionaire in Doraleh Container Terminal SA (DCT)” in the face of Djibouti’s “blatant disregard of the law and commercial contracts,” UAE state news agency WAM reported.
The President of Djibouti enacted a decree that transferred the shareholding of Port de Djibouti SA (PDSA) in Doraleh Container Terminal SA (DCT) to the government of Djibouti.
PDSA is 23.5 percent owned by China Merchants Port Holdings Company Ltd of Hong Kong.
DP World, whose shares are traded on the Nasdaq Dubai, said the transfer appears to attempt to flout an injunction of the English High Court which restrains PDSA from using its shareholding to take control of DCT.