AD Ports Group to launch tender offer for majority stake in Egypt’s ALCN

Dubai: AD Ports Group plans to launch a cash Mandatory Tender Offer (MTO) to acquire an additional stake in Egypt’s Alexandria Container & Cargo Handling Company (ALCN), a move that would give the group majority ownership and control of one of Egypt’s largest container terminal operators.

Under Egyptian securities regulations, an MTO is required once an investor intends to acquire one-third of a listed company’s shares. AD Ports Group said it aims to acquire close to 32 per cent of ALCN through the offer, which would take its total holding beyond the threshold needed for control.

The group entered ALCN’s shareholder base in November, acquiring a 19.3 per cent stake from Saudi Egyptian Investment Company, a wholly owned subsidiary of Saudi Arabia’s Public Investment Fund, through a block trade.

If completed, the transaction would strengthen AD Ports Group’s operational footprint in Egypt, one of its fastest-growing international markets, and complement its expansion along key global maritime corridors.

ALCN operates two major container terminals at Alexandria and El-Dekheila ports on the Mediterranean coast. The company plays a central role in Egypt’s port infrastructure, with its terminals accounting for around 60 per cent of the Alexandria region’s total container capacity.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, said acquiring a majority stake in ALCN would expand the group’s engagement along one of the world’s most critical shipping routes and support trade flows through the region.

Under the proposed MTO, AD Ports Group will offer EGP22.99 per ALCN share, targeting a minimum acceptance level of close to 32 per cent to secure control.

The group said governmental shareholders, which hold most of the remaining shares in ALCN, will maintain their existing shareholding positions following the transaction.

AD Ports Group said it is evaluating multiple financing options for the offer and will choose the most accretive structure. The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals in Egypt.

The acquisition would increase AD Ports Group’s top line by more than 3 per cent, based on ALCN’s financial results for the 2024–25 financial year.

ALCN reported revenue of EGP 8.37 billion ($168 million) and EBITDA of EGP 5.36 billion ($108 million), implying an EBITDA margin of 64 per cent. Operating cash flow reached EGP 4.93 billion ($99 million), while net cash stood at EGP 9.7 billion ($195 million) as of June 2025.

Established in 1984 and listed on the Egyptian Exchange since 1995, ALCN has a combined container handling capacity of 1.5 million TEUs and processed 1.07 million TEUs in FY2024–25.

The Alexandria and El-Dekheila terminals have a combined quay length of around 1.6 kilometres and are directly linked to Egypt’s national rail network, supporting multimodal logistics and regional trade.

Major customers include global shipping lines such as Mediterranean Shipping Company, Evergreen Marine Corporation, and Hapag-Lloyd.

AD Ports Group said the acquisition would enable operational synergies through enhanced terminal management, digitalisation, and sustainability initiatives, while extending its technology platforms and operating standards across both facilities.