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UAE ports group buys 70% stake in Egypt cargo and terminal operator

Egyptian President Abdel Fattah Al-Sisi (L) meets UAE Sheikh Crown Prince Mohammed bin Zayed Al Nahyan (R) during his official visit in Dubai, United Arab Emirates on January 26, 2022 [Presidency of Egypt/Anadolu Agency]
Egyptian President Abdel Fattah Al-Sisi (L) meets UAE Sheikh Crown Prince Mohammed bin Zayed Al Nahyan (R) during his official visit in Dubai, United Arab Emirates on January 26, 2022 [Presidency of Egypt/Anadolu Agency]

The UAE's AD Ports Group today announced that it has reached an agreement to acquire a 70 per cent equity stake in an Egyptian container shipping company, WAM reported.

The total purchase consideration of this transaction amounts to 514 million dirhams ($140 million). The acquisition will be fully funded from AD Ports Group's existing cash reserves and is the first international acquisition by the UAE group.

The 70 per cent stake into the International Associated Cargo Carrier B.V., which wholly owns two Egypt-based maritime companies, Transmar International Shipping Company and Transcargo International S.A.E. (TCI), will see the UAE business expand into the Middle East, Red Sea, Arabian Gulf and Eastern Coast of Africa and greater growth in Egypt.

The El Ahwal family and their executive team will remain in the management of the companies, the statement said.

Falah Mohammed Al Ahbabi, Chairman of AD Ports Group, said: "This is the first overseas acquisition in AD Ports Group's history and an important milestone in our ambitious international expansion plan. This acquisition will support our wider growth targets for North Africa and the Gulf region and broaden the portfolio of services we are able to offer in those markets."

"AD Ports Group continues to diversify and take bold steps to expand our global reach, in line with the vision and guidance of our wise leadership. We look forward to working with the two new Egypt-based operations and bringing them into the AD Ports Group family."

The acquisition increases the UAE's support for and investment in the Egyptian economy, which has been badly hit by the coronavirus pandemic and government corruption and mismanagement.

READ: Saudi writer says Egypt 'on verge of bankruptcy', should solve own problems

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AfricaEgyptMiddle EastNewsUAE
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