AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, has completed the acquisition of a 70% stake in the Egyptian International Associated Cargo Carrier (IACC) for 514 million dirhams (140 million dollars) as part of its international expansion.
The deal means the Abu Dhabi company now owns a majority stake in IACC’s portfolio of Egyptian shipping companies, Transmar International Shipping Company and Transcargo International (TCI), it said in a statement to the Abu Dhabi Stock Exchange, where its shares are traded.
The deal, first announced in July, completes AD Ports Group’s first international acquisition.
“Together, Transmar and TCI are on track to generate revenue and Ebitda [earnings before interest, tax, depreciation and amortisation] of approximately $137 million and $65 million, respectively, for the year 2022,” said AD Ports Group.
Transmar is a container shipping company that operates across the Middle East, the Red Sea, the Persian Gulf and the east coast of Africa. In 2021, Transmar handled 109,000 twenty-foot equivalent units (TEUs).
TCI is a terminal operator and a stevedoring company – loading and unloading of cargo -, operating mainly at the port of Adabiya for container and bulk cargo services. TCI handled 92,500 TEUs and 1.2 million tonnes of bulk cargo last year.
“The El Ahwal family and the management team will continue to lead the businesses and implement the strategic growth plans under the guidance and support of the board of directors and in collaboration with AD Ports Group,” the company said. .
Established in 2006, AD Ports Group owns and operates 10 ports in the UAE, including Khalifa Port, Zayed Port, Mussaffah Port, Fujairah Terminals, Community Ports, Kamsar Port and cruise line from Abu Dhabi, as well as a terminal in Guinea.
It also manages over 550 square kilometers of industrial estates and an end-to-end logistics business, in addition to offering a range of maritime services.
AD Ports Group, which debuted on the ADX in February after raising 4 billion dirhams from the sale of its shares, is looking to expand its operations globally.
Last month, it signed a preliminary agreement with India’s Adani Ports to explore joint investment opportunities in Tanzania.
It also collaborates with Hong Kong-based Hutchison Ports to identify business opportunities in food, logistics and port activities across the GCC, Africa and Asia in the maritime and logistics sector.
The company has signed agreements to develop logistics and food trade projects in Uzbekistan, and a partnership with the Aqaba Development Company to develop tourism, logistics, transport and digital infrastructure in the Jordanian coastal city.
It also plans to expand its presence in Egypt and, in partnership with the Egyptian Multipurpose Terminals Group, is developing and operating a multipurpose terminal at Safaga Port on the Red Sea.
Updated: September 14, 2022, 6:30 a.m.