AD Ports Group, the operator of industrial cities and free zones in the emirate, will acquire a 70 percent stake in Egypt’s International Associated Cargo Carrier for Dh514 million ($140m) as it seeks to expand its footprint in the Arab world’s most populous country and the wider region.
The Egyptian firm owns Transmar International Shipping Company, a regional container shipping company that operates across the Arabian Gulf, Red Sea, and the eastern coast of Africa.
The El Ahwal family and their executive team will remain in the management of the two companies after the transaction, Abu Dhabi Ports said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. It also owns terminal operator Transcargo International SAE (TCI), which operates mainly out of the Adabiya port on the shore of Suez Bay. The transaction was Abu Dhabi Ports’ first overseas acquisition, as part of its international expansion plan.
“This is the first overseas acquisition in AD Ports Group’s history, and an important milestone in our ambitious international expansion plan,” AD Ports Group chairman Falah Al Ahbabi said. “This acquisition will support our wider growth targets for North Africa and the Gulf region, and broaden the portfolio of services we can offer in those markets.”
Transmar and TCI reported revenue and earnings before interest, taxes, depreciation, and amortization of Dh325m and Dh108m, respectively, AD Ports said. Egypt is a crucial part of the company’s strategy for international expansion, group chief executive of Abu Dhabi Ports Mohamed Juma Al Shamisi said. “Egypt and the Red Sea coast are increasingly important parts of our global maritime offering, and we believe we are well-placed to boost trade and economic growth for customers and communities along these routes,” Mr. Al Shamsi said.
