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Abu Dhabi Ports Group Announced an agreement to acquire a 70% stake in the International Cargo subsidiary wholly owned by Transmar, International Freight (TCI) Headquartered in Egypt.
According to a group statement obtained by Al-Masry Al-Youm on Friday, the total value of the transaction is AED514 million, equivalent to US$140 million, as it will all come from the group’s cash reserves, amounting to AED3 billion .
The agreement was signed on March 31, 2022. The transaction is Abu Dhabi Ports Group’s first international acquisition.
Transmar is a container line operating in the Middle East, Red Sea, Arabian Gulf and the east coast of the African continent, handling 109,000 TEUs in 2021.
As for TCI, it is a stevedoring company operating at the Port of Adabiya and is the exclusive container operator there.
It operates two main business lines, bulk and container. In 2021, it will handle 92,500 TEUs and 1.2 million tons of bulk cargo.
For the past 12 months, the two companies recorded revenue of AED325 million and a profit before interest, tax, depreciation and amortization of AED108 million.
Management continues to strive for triple-digit year-over-year growth in 2022, driven by higher freight volumes and rising prevailing rates.
The Al-Ahwal family and the executive teams of both companies will continue to carry out management tasks.
This synergistic and cumulative value transaction provides Abu Dhabi Ports Group with a leading market position for further growth opportunities in the Egypt, Red Sea and Arabian Gulf regions.
“This is the first international acquisition in Abu Dhabi Ports Group’s history and an outstanding achievement within the framework of the Group’s ambitious expansion plans. It also supports growth objectives in North Africa and the Arabian Gulf region and expands our services for these the portfolio of services offered by customers in the market,”
Farah Mohammed Al-Hababi, chairman of Abu Dhabi Ports Group.
“The group continues to diversify its activities and is taking ambitious steps to expand its global reach in line with the vision and direction of its wise leaders.
We look forward to working with both companies in Egypt and welcome them to the Abu Dhabi Ports Group family,” he added.
Mohamed Gomaa al-Shamsi, Managing Director and Chief Executive Officer of Abu Dhabi Ports Group, stressed that the group is keen to continue strengthening its presence in Egypt within the framework of its expansion strategy.
“The acquisition of (Transmar) and (TCI), two companies with strong regional presence and strong client relationships, is another important step in our path to expanding our geographic presence and adds to our comprehensive service offering The range of benefits offered by the portfolio to include more clients is due to the direction of our wise leadership and the continued support of our ambitious plans,” said Shamsi.
“Egypt and the Red Sea coast are important areas in our global network of marine services and we are confident in stimulating business and economic growth for our clients and the communities in which we operate,” he continued.
UAE-based KPMG LG is the financial advisor on the transaction, PricewaterhouseCoopers is the commercial advisor, and Matouk Bassiouny and Hennawy are the legal advisors to Abu Dhabi Ports Group in these transactions.
EFG Hermes acted as exclusive financial advisor and White & Case acted as legal advisor to Transmar and TCI on the acquisitions.
The deal is the last in a series of agreements reached by Abu Dhabi Ports in the Egyptian maritime sector, including with Egyptian Multipurpose Terminals Group (EGMPT), which provides for the joint development and operation of Ain Sokhna Port and an agreement with the Red Sea Port Authority to develop, operate and manage cruise ship berths in Ain Sokhna Port Sharm El Sheikh.
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