By: Zawya

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

The control of ALCN, which operates two Mediterranean terminals at Alexandria and El-Dekheila ports, will support the AD Ports’ expansion into Egypt.

Under the terms of the MTO, AD Ports Group will offer EGP 22.99 per share ($0.48).

AD Ports Group would need to acquire close to 32% through the MTO to gain control over ALCN. The group in November acquired its first position in ALCN, a 19.3% stake, from Saudi Egyptian Investment Company’s (SEIC), a wholly owned subsidiary of the Public Investment Fund (PIF) of Saudi Arabia, via a block trade.

The proposed transaction is expected to be completed in Q2 2026, subject to regulatory approvals in Egypt.

The Abu Dhabi-listed AD Ports Group is exploring multiple financing options to fund the MTO. The group said the acquisition’s FY2024-25 revenue would boost its top line over 3%.