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Abu Dhabi Ports Group, which is backed by the UAE sovereign wealth fund ADQ will acquire a 70 percent equity stake in International Associated Cargo Carrier B.V., for 514 million dirhams ($140 million).
The acquisition, the first international acquisition by AD Ports Group, will be fully funded from its existing cash reserves, which stood at over 3 billion dirhams as of March 31, 2022, it said in a statement.
International Associated Cargo Carrier B.V. wholly owns two Egypt-based maritime companies, Transmar International Shipping Co. and Transcargo International S.A.E.
Together, Transmar and TCI reported last twelve months revenue and EBITDA of 325 million dirhams and 108 million dirhams, respectively. For full-year 2022, management is on track to deliver triple-digit growth year-on-year driven by both volume and rate increases, AD Ports said.
AD Ports Group operates the deepwater Khalifa Port in the Abu Dhabi emirate, along with other ports and logistics parks there, and the Indian Ocean Fujairah port.
"This acquisition will support our wider growth targets for North Africa and the Gulf region and broaden the portfolio of services we are able to offer in those markets,” said Falah Mohammed Al Ahbabi, Chairman of AD Ports Group.
KPMG LG acted as the financial advisor, PwC as the commercial advisor and Matouk Bassiouny and Hennawy as the legal advisor to AD Ports Group in these transactions.
(Writing by Brinda Darasha; editing by Seban Scaria)
