News / AD Ports launches takeover bid for Egyptian terminal operator ALCN

Photo: Alexandria Container & Cargo Handling Company

Abu Dhabi’s rapidly expanding AD Ports Group announced this morning it is preparing a takeover bid for Egyptian terminal operator Alexandria Container & Cargo Handling Company (ALCN), which is listed on the Egyptian Stock Exchange.

Last month, AD Ports acquired a 19.3% stake in ALCN from Saudi Egyptian Investment, a wholly-owned subsidiary of the Public Investment Fund of Saudi Arabia, via a block trade, and today announced its intention to launch a cash mandatory tender offer (MTO) to acquire an additional stake, bringing majority ownership and control of the company.

Under Egyptian securities exchange rules, ADP is required to make an MTO to all shareholders once it intends to acquire a third of ALCN – it needs to acquire close to 32% through the offer.

“By acquiring a majority stake in ALCN, we would be maximising our engagement and expanding our operational footprint along one of the world’s most critical maritime routes,” said Capt Mohamed Juma Al Shamisi, AD Ports Group CEO.

ALCN operates two Mediterranean terminals at the neighbouring ports of Alexandria and El-Dekheila, with a combined container capacity of 1.5m teu across 1.6km of quays, and throughput of 1.07m teu – implying a utilisation rate of approximately 71% for the fiscal year which ended 30 June this year.

In that period, ALCN reported E£8.37bn ($168m) in revenue, and E£5.36bn ($108m) in EBITDA, implying an EBITDA margin of 64%, and generated E£4.93bn ($99m) in operating cash flow – and as at 30 June last year had a net cash position of E£9.7bn ($195m).

The acquisition would boost AD Ports’ top line by more than 3%, and “is expected to deliver significant strategic and financial benefits to the group”, it said.

Capt Al Shamisi added: “This investment would support our efforts to facilitate trade through this vital corridor, while deepening our partnerships and expanding our investments in Egypt, one of our fastest growing foreign markets.

“This major strategic deployment in Egypt would be fully aligned with the directives of our wise leadership to drive economic diversification, strengthen regional integration, and deliver long-term value for our stakeholders.”

Under the terms of the MTO, AD Ports will offer E£22.99 per share, while the governmental shareholders, who hold most of the remaining shares in ALCN, will maintain their current respective holdings.

AD Ports added that it was “exploring multiple financing options to fund the MTO and will opt for the most accretive one”, and the transaction is “expected to be completed in Q2 26, subject to regulatory approvals in Egypt”.

The Loadstar recently reported how the region was seeing a surge of investment in port capacity, with APM Terminals recently opening a 2m teu expansion at Suez Canal Container Terminal, while the Damietta Alliance Container Terminal 2 is scheduled to open imminently.

In a separate development, AD Ports today signed a memorandum of understanding with Kuwait Ports Authority to explore the development and operation of container operations at Shuaiba Port.

Currently, the majority of the country’s container traffic is unloaded at Shuwaikh port.

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