The port and logistics company AD Ports has received an offer from the Abu Dhabi-based holding company L’Imad. Should the deal go ahead, AD Ports could delist from the stock exchange.
L’Imad Holding, through its subsidiary ADQ, has made an offer to acquire up to 100% of the shares in AD Ports Group. The holding company is owned by the Government of Abu Dhabi and is chaired by its Crown Prince, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan.
ADQ currently holds over three-quarters (75.42%) of the shares in AD Ports Group, the sole port and infrastructure operator in Abu Dhabi. The proposed offer values the remaining shares at 6.25 AED each; this represents a premium of 23% over AD Ports Group’s closing price of 5.10 AED on 14 August.
AD Ports Group intends to submit the proposal to its board of directors, subject to compliance with Abu Dhabi’s regulations governing takeovers and mergers of listed companies. The offer is subject to conditions; AD Ports Group has announced that it will provide further updates on significant developments.
As L’Imad explained, a delisting would enable the company to pursue investments, strategic acquisitions and “operational restructuring” without having to take into account the short- to medium-term return expectations of the public capital markets.
Earlier this year, Abu Dhabi had already consolidated ADQ’s assets and shareholdings under the umbrella of L’Imad. As a result, ADQ’s portfolio – including its majority stake in AD Ports Group – was placed under the management of the sovereign wealth fund as part of efforts to centralise control over strategic investments.
