AD Ports Group’s board has recommended that shareholders accept L'imad’s Dh6.25-a-share offer to take full control of the Abu Dhabi ports and logistics company, following a fairness opinion from its independent financial adviser HSBC.
L'imad, Abu Dhabi’s sovereign investment vehicle, through its wholly owned subsidiary ADQ, launched a voluntary tender offer on August 18 to acquire the remaining shares in AD Ports. ADQ already owns 75.42 per cent of the company.
Under the offer, shareholders will receive Dh6.25 ($1.70) in cash for each share they tender. The price represents a 23 per cent premium to AD Ports’ closing price before the bid was announced and is about 95 per cent above the Dh3.20-a-share price at which the company listed on the Abu Dhabi Securities Exchange in 2022.
The offer values AD Ports at about Dh31.8 billion.
Shareholders have until 3pm on September 15 to accept the offer, unless the deadline is extended. Full details of the board’s recommendation and HSBC’s fairness opinion have been published in an AD Ports disclosure to the Abu Dhabi Securities Exchange.
AD Ports appointed HSBC Bank Middle East as its independent financial adviser on August 21 after L'imad announced its intention to acquire the company.
L'imad said the offer gives shareholders “an attractive opportunity to realise certain and immediate value”, while allowing AD Ports to pursue long-term growth, including acquisitions, without the constraints of a public listing.
The offer is the latest move by L'imad to consolidate strategic assets in Abu Dhabi as it builds a portfolio spanning energy and utilities, ports and logistics, aviation, urban development and industrial sectors.
L'imad was set up last year and is expanding its portfolio. In July, Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, approved the fund’s investment and operational framework for strategic sectors.
This month, L'imad completed its acquisition of the remaining shares in Abu Dhabi National Energy Company, or Taqa, through its subsidiary Abu Dhabi Power Corporation, taking its stake to 100 per cent from 98.12 per cent. Taqa is now awaiting regulatory approval to delist from the Abu Dhabi Securities Exchange.
L'imad also owns a significant stake in Abu Dhabi real estate developer Modon Holding.
AD Ports operates about 40 terminals in the UAE and has a presence in about 50 markets globally.
