AD Ports seeks majority stake in Alexandria container terminal

AD Ports, the maritime company owned by Abu Dhabi’s ADQ sovereign wealth fund, is seeking to increase its stake in Alexandria Container & Cargo Handling Co., and become the majority holder of Egypt’s largest publicly traded container terminal operator.

Cementing control over the Alexandria-based firm, which handles more than 1 million containers a year and plays a central role in trade flows linking Europe, Africa and Asia, deepens ADQ’s involvement in Egypt, where it has become a leading acquirer of state assets. AD Ports earlier bought a stake in the company from a unit of Saudi Arabia’s Public Investment Fund.

ADQ is the lead investor in the $35 billion Ras El Hekma coastal development project, the largest foreign direct investment in Egyptian history, that grants it rights to develop a huge swath of Mediterranean coastline to create a new city, tourism hub and free zone.

Beyond Ras El Hekma, ADQ’s portfolio in Egypt includes stakes in Abu Qir Fertilizers and Chemical Industries, one of the country’s largest nitrogen fertilizer producers, and Amoun Pharmaceutical Company, along with holdings in logistics, transportation and food supply chains.

AD Ports said it would buy the stake in Alexandria Container through a mandatory tender offer that requires a buyer taking control of a company to give all other shareholders a chance to sell as well.