Abu Dhabi Ports Group announced that it reached an agreement to acquire 70 percent of the shares of the International Cargo Subsidiary, which is wholly owned by Transmar and Transcargo International (TCI) which are based in Egypt.
According to a statement by the group obtained by Al-Masry Al-Youm on Friday, the total value of the deal amounted to AED 514 million, equivalent to US$140 million, as it will be fully financed from the group’s cash reserves, which amounts to AED 3 billion.
This agreement was signed on March 31, 2022. This deal is the first international acquisition of Abu Dhabi Ports Group.
Transmar is a container line operating in the Middle East, the Red Sea, the Arabian Gulf and the eastern coast of the African continent, and during 2021 it handled 109,000 TEUs.
As for TCI, it is a stevedoring company operating in the port of Adabiya, where it is the exclusive container operator.
It operates two main lines of operations, bulk cargo and containers. In 2021, it handled 92,500 TEUs and 1.2 million tons of bulk cargo.
During the past 12 months, the two companies achieved revenues of AED 325 million, and its profits before interest, taxes, depreciation and amortization amounted to AED 108 million.
The management continues to strive to achieve a triple digit year-on-year growth rate during 2022 driven by volume growth and higher prevailing freight charges.
The Al-Ahwal family and the executive teams of the two companies will continue to carry out management tasks.
This synergistic and cumulative value transaction provides the Abu Dhabi Ports Group with a leading market position for further growth opportunities in Egypt and the Red Sea and Arabian Gulf regions.
“This is the first international acquisition in the history of the Abu Dhabi Ports Group, and constitutes a distinguished achievement in the framework of the group’s ambitious expansion plans. It also supports growth goals in North Africa and the Arab Gulf region, and expands the portfolio of services we provide to our clients in these markets,”
Falah Mohammed Al Ahbabi, Chairman of Abu Dhabi Ports Group, said.
“The group continues to diversify its activities and is taking ambitious steps to expand its global presence in line with the vision and directives of its wise leaders.
We look forward to working with these two companies in Egypt, and welcome them to the Abu Dhabi Ports Group family,” he added.
Mohamed Gomaa al-Shamsi, Managing Director and CEO of Abu Dhabi Ports Group, stressed the group’s keenness to continue strengthening its presence in Egypt within the framework of its expansion strategy.
“The acquisition of (Transmar) and (TCI), which have a strong regional presence and strong customer relations, which is another major step on the way to expanding our geographical spread, and increasing the range of benefits provided by our integrated services portfolio to include more customers, thanks to the directives of our wise leadership and its constant and continuous support for our ambitious plans,” Shamsi said.
“Egypt and the Red Sea coast are important areas within our global marine services network, and we are confident in our ability to stimulate commercial and economic growth for our customers and the communities in which we operate,” he continued.
The UAE’s KPMG LG was the financial advisor to the deal, while PwC was the commercial advisor, and Matouk Bassiouny and Hennawy was the legal advisor to the Abu Dhabi Ports Group in these deals.
EFG Hermes acted as the exclusive financial advisor, and White & Case acted as legal advisor to Transmar and TCI in the acquisition.
This deal is the last in a series of agreements concluded by Abu Dhabi Ports Group in the maritime sector in Egypt, including the one signed with the Egyptian Group For Multipurpose Terminals ( EGMPT), which provides for the joint development and operation of Ain Sokhna port, and the agreement concluded with the General Authority of Red Sea Ports for the development, operation and management of berths for cruise ships in the port of Sharm el-Sheikh.