Abu Dhabi wealth fund L'IMAD plans to acquire full ownership of AD Ports

Abu Dhabi's sovereign wealth fund, L IMAD, has announced plans to acquire full ownership of AD Ports Group. The investment firm currently holds 75.42% of AD Ports shares through its subsidiary, ADQ. The fund plans to purchase the remaining shares at a voluntary conditional cash offer of 6.25 dirhams per share, representing a 23% premium to the company's closing share price of 5.10 dirhams on August 14. This offer values AD Ports at over 31 billion dirhams ($8.6 billion), according to Reuters calculations.

AD Ports shares surged nearly 15% to 5.86 dirhams in early trading on Monday as the company edged closer to the offer price. L IMAD, chaired by Crown Prince Sheikh Khaled bin Mohamed bin Zayed al-Nahyan, is one of several Abu Dhabi wealth funds with an estimated $300 billion in assets under management, as per Global SWF research platform.

In the second quarter, AD Ports continued to expand alternative multimodal trade routes and operations across the UAE to mitigate the effects of the Iran war, which has led to the Strait of Hormuz's closure. The offer announced on Monday will enable AD Ports to pursue its long-term strategic goals, including capital investment programs and strategic acquisitions.

L IMAD expects AD Ports to require potential equity raises, noting that recent transactions have elevated its financial leverage levels, which may constrain its capacity to distribute dividends to shareholders. However, L IMAD assured that sufficient resources are available to ADQ to satisfy the cash consideration payable to AD Ports shareholders under the terms of the offer. The investment firm has appointed Rothschild as its financial adviser for the tender offer.