AD Ports Group announced its intention to launch a cash Mandatory Tender Offer to acquire an additional stake in Alexandria Container & Cargo Handling Company, which would give it majority ownership and control of one of the largest container terminal operators in Egypt.
The control of ALCN, which operates two strategic Mediterranean terminals at Alexandria and El-Dekheila ports, will complement the Group’s expansion into Egypt and generate tangible financial returns for AD Ports Group.
To gain control over ALCN and have a successful transaction, AD Ports Group would need to acquire close to 32% through the MTO.
The Group in November acquired its first position in ALCN, a 19.3% stake, from Saudi Egyptian Investment Company’s, a wholly-owned subsidiary of the Public Investment Fund of Saudi Arabia, via a block trade.
The proposed transaction is expected to be completed in Q2 2026, subject to regulatory approvals in Egypt. Under Egyptian securities exchange rules, AD Ports Group is required to make a MTO to all shareholders once it intends to acquire a third of ALCN.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, stated this investment would support the efforts to facilitate trade through the vital corridor, while deepening the partnerships and expanding the investments in Egypt, one of the fastest growing foreign markets.
Under the terms of the MTO, AD Ports Group will offer EGP 22.99 per share, targeting a minimum uptake of close to 32% to gain control over ALCN.
The acquisition of a majority stake in ALCN, whose FY2024-25 revenue would boost AD Ports Group’s top line by over 3%, is expected to deliver significant strategic and financial benefits to the Group.
ALCN has a combined container capacity of 1.5 million TEUs and throughput of 1.07 million TEUs, implying a utilization rate of approximately 71% for the fiscal year ending 30 June 2025.
Its two terminals in Alexandria and El-Dekheila ports boast a total quay length of approximately 1.6 kilometers and are directly connected to Egypt’s national rail network, ensuring seamless multimodal connectivity for international shipping lines and regional trade.
The acquisition would unlock significant operational synergies by driving innovation in terminal management, digitalization, and sustainability.
Both Alexandria and El-Dekheila 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.
The direct rail connectivity of both terminals further enhances their role as vital hubs in Egypt’s and the region’s logistics ecosystem.
Since 2022, AD Ports Group has invested significantly in Egypt, in container shipping, in terminal and stevedoring operations, and in maritime agency and cargo services.
