AD Ports Group intends to acquire controlling stake in Egyptian company

Abu Dhabi’s AD Ports Group said it intends to launch a cash Mandatory Tender Offer (MTO) to acquire an additional stake and majority ownership in Alexandria Container & Cargo Handling Company (ALCN), one of the largest container terminal operators in Egypt.

In November, AD Ports Group acquired its first position in ALCN, a 19.3 per cent stake, from Saudi Egyptian Investment Company (SEIC). To gain control and have a successful transaction, the Group would need to acquire close to 32 per cent through the MTO.

ALCN operates two Mediterranean terminals at Alexandria and El-Dekheila ports, and the move will complement AD Ports Group’s expansion into Egypt.

Under the terms of the MTO, AD Ports Group will offer EGP22.99 per share. The market celebrated the news by kicking ALCN stock prices up by 7.06 per cent on Monday to EGP25.64.

Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, commented: “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.

“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.”

AD Ports eyes optimal funding mix

The Group said it was exploring “multiple financing options” to fund the MTO and will opt for the “most accretive one”.

The acquisition of a majority stake in ALCN, whose FY2024-25 revenue would boost AD Ports Group’s top line by over 3 per cent, is expected to deliver significant strategic and financial benefits to the Group.

ALCN operates a highly profitable and cash-generative business, and boasts a healthy balance sheet, with an EGP9.7 billion (US$195 million) net cash position (as of June 2025). In FY2024-25, ALCN reported EGP8.37 billion (US$168 million) in revenue and EGP5.36 billion (US$108 million) in EBITDA, implying an EBITDA margin of 64 per cent.

The proposed transaction is expected to be completed in the second quarter of 2026, subject to regulatory approvals in Egypt. In light of AD Ports Group’s intention to launch an MTO, the governmental shareholders, who hold most of the remaining shares in ALCN, will maintain their current shareholding stakes in the company.

Established in 1984, ALCN has a combined container capacity of 1.5 million TEUs and throughput of 1.07 million TEUs, implying a utilisation rate of approximately 71 per cent for the fiscal year 2024-25. The company is strategically active at a key crossroads of global commerce, with the Suez Canal handling 12-15 per cent of global trade annually, according to The Atlantic Council.

Both Alexandria and ElDekheilla terminals are equipped to handle large container vessels, and ALCN would benefit from AD Ports Group’s advanced technologies and operational standards.

Since 2022, AD Ports Group has invested significantly in Egypt, in container shipping, in terminal and stevedoring operations, and in maritime agency and cargo services. In 2027, the Group plans to inaugurate the US$200 million Noatum Ports Safaga terminal, the first internationally operated multipurpose cargo terminal in Upper Egypt.