AD Ports Group plans mandatory tender offer for Egypt Terminal Operator

AD Ports Group has announced its intention to launch a cash mandatory tender offer to acquire an additional stake in Alexandria Container & Cargo Handling Company, a move that would give the Abu Dhabi-based group majority ownership and control of one of Egypt’s main container terminal operators.

The proposed transaction targets a controlling stake of close to 32 per cent through the tender offer. AD Ports Group currently holds a 19.3 per cent stake in ALCN, acquired in November from Saudi Egyptian Investment Company, a subsidiary of Saudi Arabia’s Public Investment Fund, through a block trade.

Under Egyptian securities regulations, a mandatory tender offer is required when an investor intends to acquire at least one-third of a listed company. AD Ports Group said the transaction is expected to be completed in the second quarter of 2026, subject to regulatory approvals in Egypt.

ALCN operates two container terminals at the ports of Alexandria and El-Dekheila on the Mediterranean coast. AD Ports Group said gaining control of ALCN would support its expansion in Egypt and contribute to financial returns, while complementing its wider regional port and logistics network.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, said, “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.”

Under the terms of the offer, AD Ports Group will propose a price of EGP 22.99 per share, with a minimum uptake of close to 32 percent required to gain control. The group said Egyptian governmental shareholders, which hold most of the remaining shares in ALCN, will retain their existing shareholdings following the offer.

AD Ports Group stated that it is evaluating several financing options to fund the transaction and will select what it described as the most accretive structure. The acquisition is expected to increase the group’s revenue by more than 3 percent based on ALCN’s financial performance in the 2024–25 fiscal year.

For the year ended June 2025, ALCN reported revenue of EGP 8.37 billion and EBITDA of EGP 5.36 billion, with operating cash flow of EGP 4.93 billion. As of June 2025, the company held a net cash position of EGP 9.7 billion.

Founded in 1984 and listed on the Egyptian Stock Exchange since 1995, ALCN has a combined container handling capacity of 1.5 million TEUs and recorded throughput of 1.07 million TEUs in the 2024–25 fiscal year. Its terminals have a total quay length of around 1.6 kilometres and are connected to Egypt’s national rail network.

The Alexandria terminals serve shipping lines including Mediterranean Shipping Company, Evergreen Marine Corporation and Hapag-Lloyd. The region is positioned along trade routes linked to the Suez Canal, which handles an estimated 12 to 15 per cent of global trade each year, according to data cited by AD Ports Group.

AD Ports Group has expanded its presence in Egypt since 2022 across shipping, terminal operations and maritime services. The group plans to open the Noatum Ports Safaga terminal in 2027 and is also developing cruise terminals at several Red Sea ports, alongside an industrial and logistics park at East Port Said under a long-term agreement signed in 2025.