Abu Dhabi Ports Plans to Acquire Controlling Stake in Egyptian Container Operator Through Mandatory Offer

Cairo – EcoPulse24 Abu Dhabi Ports Group announced its intention to launch a mandatory purchase offer to acquire an additional stake in Alexandria Container and Cargo Handling Company. This move is set to provide the group with a controlling majority stake in one of Egypt's largest container terminal operators.

The details of the deal indicate that the group aims to purchase around 32% of the company's shares at a price of 22.99 Egyptian pounds per share, raising its ownership to a controlling level. This follows a previous investment of 19.3% made in November through a deal with the Saudi Egyptian Investment Company, a subsidiary of the Saudi Public Investment Fund.

The deal aims to enhance Abu Dhabi Ports' presence in the Egyptian market, particularly through the operation of two strategic terminals in Alexandria and Dekheila on the Mediterranean Sea, which supports the group's expansion along one of the world's key maritime trade routes linked to the Suez Canal. The group expects that revenues from Alexandria Container and Cargo Handling Company will contribute to a more than 3% increase in its revenues, given the high profit operational activity and strong financial base of the Egyptian company.

According to the financial data for the fiscal year 2024–2025: - Revenues: 8.37 billion Egyptian pounds - Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): 5.36 billion pounds - EBITDA Margin: approximately 64% - Operating Cash Flow: 4.93 billion pounds - Net Cash: 9.7 billion pounds by June 2025 The company's terminals have a capacity of about 1.5 million TEUs annually, with actual handling volume reaching 1.07 million TEUs at an operating rate of nearly 71% during the fiscal year ending June 2025.

The company's operations are strategically located on the global trade map, with the Suez Canal accounting for 12% to 15% of global trade annually and about 30% of container traffic, according to international research institutions.

The Alexandria and Dekheila terminals also have direct connections to the Egyptian railway network, enhancing logistical integration and multiple transportation options. The deal is expected to be completed during the second quarter of 2026, pending regulatory approvals in Egypt.

The group indicated that it is exploring multiple financing options for the purchase offer, aiming to choose the most cost-effective structure. The group confirmed that the Egyptian government shareholders, who hold the majority of the remaining stakes, will retain their current ownership in the company after the deal is executed.