AD Ports Group to Launch Mandatory Tender Offer for Majority Stake in ALCN

Abu dhabi: AD Ports Group has announced plans to initiate a cash Mandatory Tender Offer (MTO) aiming to acquire an additional stake in Alexandria Container and Cargo Handling Company (ALCN), thereby securing majority ownership and control over one of Egypt's largest container terminal operators.According to Emirates News Agency, the acquisition of ALCN, which manages two strategic Mediterranean terminals at Alexandria and El-Dekheila ports, is intended to bolster AD Ports Group's expansion into Egypt, offering significant financial returns. The group aims to acquire approximately 32 percent more shares through the MTO to gain control over ALCN.AD Ports Group first entered ALCN in November by purchasing a 19.3 percent stake from Saudi Egyptian Investment Company, a subsidiary of the Public Investment Fund of Saudi Arabia, through a block trade. The completion of the proposed transaction is anticipated by Q2 2026, pending regulatory approvals in Egypt.Under Egyptian securities exchange regulations, AD Por ts Group must issue an MTO to all shareholders when seeking to acquire a third of ALCN. Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, emphasized that acquiring a majority stake in ALCN would enhance engagement and operational presence along a critical maritime route. This investment is part of a strategic plan to facilitate trade through the corridor, while strengthening partnerships and expanding investments in Egypt.The MTO terms outline an offer of EGP22.99 per share, with a minimum target of close to 32 percent to secure control over ALCN. Governmental shareholders, holding most of the remaining shares, will retain their stakes.AD Ports Group is evaluating several financing options for the MTO, selecting the most beneficial one. The acquisition is expected to increase AD Ports Group's revenue by over 3 percent in FY2024-25, delivering strategic and financial benefits. ALCN's strong financial position, with a net cash of EGP9.7 billion as of June 2025, will enhance AD Ports Group's liquidity and leverage.In FY2024-25, ALCN reported EGP8.37 billion in revenue and EGP5.36 billion in EBITDA, with an EBITDA margin of 64 percent, generating EGP4.93 billion in Operating Cash Flow. Established in 1984 and listed on the Egyptian Stock Exchange since 1995, ALCN has a capacity of 1.5 million TEUs and a throughput of 1.07 million TEUs, with a utilization rate of approximately 71 percent for FY2024-25.ALCN's terminals, with a quay length of 1.6 kilometers, connect directly to Egypt's national rail network, ensuring smooth multimodal connectivity. Its clients include major shipping companies such as Mediterranean Shipping Company, Evergreen Marine Corporation, and Hapag Lloyd AG. The Suez Canal, handling 12 to 15 percent of global trade and 30 percent of global container traffic annually, underscores the strategic importance of ALCN's operations in the Alexandria region, which accounts for 60 percent of the area's total container capacity.The acquisition promises operational s ynergies through innovations in terminal management and digitalization. ALCN's terminals, equipped to handle large vessels, will benefit from AD Ports Group's advanced technologies and operational standards, with their rail connectivity enhancing their role in the logistics ecosystem.