ADQ parent L’IMAD offers Dh6.25 per share to acquire full stake in AD Ports Group

Abu Dhabi sovereign investor L’IMAD has announced its intention to make a voluntary conditional cash offer to acquire up to 100 per cent of the issued and paid-up share capital of Abu Dhabi Ports Company (AD Ports Group) that it does not already own.

The offer will be made through L’IMAD’s wholly-owned subsidiary, Abu Dhabi Developmental Holding Company (ADQ), which currently holds 75.42 per cent of AD Ports Group’s shares.

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L’IMAD is a sovereign investor of the Government of Abu Dhabi that manages a portfolio of national and international investments across public and private markets, aiming to generate sustainable long-term financial returns.

Under the terms of the proposed offer, shareholders would receive Dh6.25 per share in cash – a premium of 23 per cent to the last closing share price of Dh5.10, 25 per cent above the one-month volume weighted average price (VWAP) of Dh5.02, and 31 per cent above the three-month VWAP of Dh4.76.

The price also represents a 95 per cent premium to the Dh3.20 per share subscription price set before the company's listing on the Abu Dhabi Securities Exchange (ADX) in February 2022.

L’IMAD said the offer gives AD Ports Group shareholders “an attractive opportunity to realise certain and immediate value.”

Last week, AD Ports Group reported an 88 per cent rise in second-quarter net profit to Dh836 million, as growth across maritime and shipping, economic cities and free zones, and logistics helped deliver the group’s strongest quarterly results on record.

Revenue for the three months ended June 30 climbed 47 per cent to Dh7.08 billion, while adjusted EBITDA rise 49 per cent to Dh1.74 billion, with the EBITDA margin improving to 24.5 per cent from 24.2 per cent a year earlier.

Full details of the offer, including its terms, conditions and timetable, will be published in due course by AD Ports Group. The offer remains subject to regulatory approvals.

L’IMAD has appointed Rothschild & Co Middle East as financial adviser for the tender offer. Emirates NBD Bank and First Abu Dhabi Bank will act as joint-lead receiving banks, while Emirates NBD Capital and First Abu Dhabi Bank will serve as joint-lead managers. EFG Hermes UAE has been named co-lead manager, with Allen Overy Shearman Sterling acting as legal adviser.

In a statement to Abu Dhabi Securities Exchange, Abu Dhabi Ports Company confirmed that it has received a notification from Abu Dhabi Developmental

Holding Company (ADQ) of its intention to submit a voluntary conditional cash offer to acquire up to 100 per cent of the issued and paid-up share capital of the Company not already held by ADQ.

AD Ports said it will make further announcements with respect to any material developments in due course.

Written by

Waheed Abbas

Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.