AD Ports Group Announces Mandatory Tender Offer For Majority Stake In Alexandria Container & Cargo Handling Company

AD Ports Group plans to launch a cash Mandatory Tender Offer (MTO) to acquire a larger stake in Alexandria Container & Cargo Handling Company (ALCN). This move aims to secure majority control of one of Egypt's largest container terminal operators. ALCN manages two key Mediterranean terminals at Alexandria and El-Dekheila ports, aligning with AD Ports Group's expansion strategy in Egypt.

The acquisition is expected to enhance AD Ports Group's financial performance, with ALCN's FY2024-25 revenue projected to increase the Group's top line by over 3 percent. ALCN reported EGP8.37 billion ($168 million) in revenue and EGP5.36 billion ($108 million) in EBITDA for FY2024-25, reflecting a 64 percent EBITDA margin.

AD Ports Group initially acquired a 19.3 percent stake in ALCN from the Saudi Egyptian Investment Company (SEIC), a subsidiary of Saudi Arabia's Public Investment Fund, through a block trade in November. To gain control over ALCN, the Group needs to acquire nearly 32 percent more through the MTO.

The proposed transaction is anticipated to conclude by Q2 2026, pending regulatory approvals in Egypt. Under local securities exchange regulations, AD Ports Group must make an MTO to all shareholders when acquiring a third of ALCN.

ALCN operates profitably with an EGP9.7 billion ($195 million) net cash position as of June 2025, bolstering AD Ports Group’s liquidity and leverage. The company has been listed on the Egyptian Stock Exchange since 1995 and was established in 1984.

ALCN’s two terminals have a combined container capacity of 1.5 million TEUs and throughput of 1.07 million TEUs for FY2024-25, achieving approximately 71 percent utilisation. The terminals' quay length totals around 1.6 kilometres and are linked directly to Egypt’s national rail network.

Enhancing Trade Facilitation

Captain Mohamed Juma Al Shamisi, Managing Director and CEO of AD Ports Group, stated that acquiring a majority stake would expand their operational footprint along crucial maritime routes. "This investment would support our efforts to facilitate trade through this vital corridor," he said.

The acquisition aligns with leadership directives for economic diversification and regional integration while delivering long-term value for stakeholders. Governmental shareholders will retain their stakes as AD Ports Group seeks additional shares through the MTO at EGP22.99 per share.

Operational Synergies and Technological Advancements

The acquisition is set to unlock operational synergies by enhancing terminal management, digitalisation, and sustainability practices. Both Alexandria and El-Dekheila terminals can handle large vessels and will benefit from AD Ports Group’s advanced technologies.

The strategic location of ALCN at the Suez Canal crossroads supports global commerce, handling up to 15 percent of global trade annually. The Alexandria region accounts for about 60 percent of its total container capacity due to ALCN's operations.

AD Ports Group is exploring various financing options for the MTO, aiming for the most beneficial choice. This strategic deployment aligns with efforts to deepen partnerships and expand investments in Egypt, one of its fastest-growing foreign markets.

With inputs from WAM