AD Ports Group hires HSBC to advise on L'imad takeover bid

AD Ports Group, a port, logistics chain and free zone operator, has enlisted the services of HSBC to assist with a potential takeover bid from Abu Dhabi sovereign investment firm, L’imad. The company's board, meeting via video conference, decided to approve the appointment of HSBC Bank Middle East as financial advisers to manage the transaction. The board did not specify a timeline for the deal.

L’imad announced its intention to acquire 100% of the shares it does not already hold in AD Ports Group, aiming to expand its logistics portfolio. The Dubai-based entity is offering Dh6.25 ($1.70) per share, a 23% premium on the Dh5.10 closing price from the trading session preceding the offer date of August 17. This valuation puts the company at Dh31.8 billion.

L’imad's offer is 25% and 31% above the one-month and three-month volume-weighted average prices of Dh5.02 and Dh4.76, respectively. Furthermore, it is 95% higher than the Dh3.20 per share initial public offering subscription price when AD Ports Group debuted on the Abu Dhabi Stock Exchange in February 2022.

L’imad believes the offer provides AD Ports Group shareholders with an attractive opportunity to realize immediate value. The transaction, pending regulatory approval, will enable AD Ports Group to pursue its long-term goals, such as investments and acquisitions, more efficiently, free from the funding limitations and short-term return pressures of public markets.