AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, is to launch an offer to buy a controlling stake in one of the largest container terminal operators in Egypt, to expand the company's operations in the country.
As part of the deal, AD Ports will launch a cash mandatory tender to buy a stake of about 32 per cent in the Alexandria Container & Cargo Handling Company (ALCN), it said in a statement on Monday to Abu Dhabi Securities Exchange, where its shares are traded.
AD Ports will offer 22.99 Egyptian pounds ($0.48) per share, it added. The governmental shareholders, who hold most of the remaining shares in ALCN, will maintain their current respective shareholding stakes.
The latest offer comes after AD Ports last month bought a 19.3 per cent stake in ALCN from the Saudi Egyptian Investment Company, a wholly-owned unit of the Public Investment Fund of Saudi Arabia, through a block trade.
Set up in 1984 and listed on the Egyptian Stock Exchange, ALCN operates two terminals at the Alexandria and El Dekheila ports, with a combined container capacity of 1.5 million TEUs (twenty-foot equivalent units) and throughput of 1.07 million TEUs. The deal is expected to "complement" the expansion of AD Ports into Egypt and generate tangible financial returns for the company.
"This investment would support our efforts to facilitate trade through this vital corridor, while deepening our partnerships and expanding our investments in Egypt, one of our fastest growing foreign markets," said Capt Mohamed Al Shamisi, managing director and group chief executive of AD Ports.
The company is exploring financing options to fund the latest transaction, which is expected to close in the second quarter of next year, subject to regulatory approvals in Egypt.
Since 2022, AD Ports Group has invested significantly in the country, in container shipping, stevedoring – the process of loading and unloading cargo on to and from ships at ports – and terminal operations, as well as in maritime agency and cargo services.
In 2027, the group plans to inaugurate the $200 million Noatum Ports Safaga terminal, the first internationally operated multipurpose cargo terminal in Upper Egypt. AD Ports is also developing cruise terminals at the Red Sea ports of Safaga, Hurghada and Sharm El Sheikh.
This year, it signed a 50-year agreement to develop and operate Kezad East Port Said, a 20-square-kilometre industrial and logistics park near the Mediterranean mouth of the Suez Canal.
"Both Alexandria and El Dekheilla terminals are equipped to handle large container vessels and ALCN would benefit from AD Ports Group’s advanced technologies and best-in-class operational standards," AD Ports said.
Healthy balance sheet
ALCN has a healthy balance sheet, with $195 million net cash position as of June 2025, the statement said. In the 2024-2025 financial year, it reported $168 million in revenue.
Its terminals in Alexandria and El Dekheila have a total quay length of about 1.6km and are connected directly to Egypt’s national rail network. ALCN’s major customers include global shipping firms such as the Mediterranean Shipping Company, Evergreen Marine Corporation and Hapag-Lloyd.
Container operations in Kuwait
On Monday, AD Ports also signed a preliminary agreement with the Kuwait Ports Authority to develop and operate the container terminal at the country's Shuaiba Port.
AD Ports will “prepare the technical, environmental and financial feasibility studies” to operate Kuwait’s oldest port, it said in a statement to state news agency Wam.
Shuaiba handles commercial cargo, raw material for industry and chemicals. The site, which is 60km south of Kuwait City and started operations in the 1960s, spans 2.2 million square metres and has 20 berths. The container terminal has a storage area of 318,000 square metres.
The Kuwait authority will “designate the project site at Shuaiba Port and collaborate with AD Ports Group in completing the required studies", the companies said in a statement.
