ADQ moves to take AD Ports fully private

Abu Dhabi's sovereign investment firm, ADQ, is proposing to acquire the remaining shares in AD Ports Group for cash in a tender offer. This move would grant ADQ full ownership of the key ports, shipping and logistics company based in the emirate. Currently, ADQ holds about 75.42% of AD Ports Group, with the remaining 24.58% set to be taken over in the proposed offer.

The cash tender price set for the unowned shares is AED6.25 per share, representing a significant premium over the company's pre-offer market valuation. AD Ports' market capitalization stands at approximately AED25.95 billion, making the offer price around 22.5% higher than its last closing price on August 14. Completion of the transaction will depend on meeting tender conditions and regulatory requirements.

Minority shareholders have the option to accept the cash offer, and the new ownership structure will be determined by the level of acceptances and regulatory compliance. The proposed acquisition follows AD Ports' strong financial performance, with revenue increasing 47% year-on-year to AED7.08 billion in the second quarter. The company's diversified operations, spanning ports, shipping, freight forwarding, and digital trade services, have expanded its reach beyond the Abu Dhabi market.

The tender offer comes as part of broader changes in Abu Dhabi's sovereign investment structure, with ADQ and another investment platform, L'IMAD, now consolidated under the L'IMAD umbrella, managing a portfolio worth around $300 billion across more than 250 subsidiaries.