L’IMAD’s AD Ports offer clears key conditions, settlement due by October 9

L’imad, Abu Dhabi’s sovereign investment fund, has successfully cleared all prerequisites to pursue a full acquisition of AD Ports Group. ADQ, a wholly-owned subsidiary of L’imad, is offering Dh6.25 per share for AD Ports shares it does not already possess. L’imad currently holds a 75.42% stake in AD Ports, having initiated the voluntary tender offer on August 18 to purchase the remaining shares.

AD Ports confirmed on Tuesday that it has received notification and approval from ADQ, affirming that all other conditions stipulated by the offer have been satisfied. The acquisition is projected to be finalized by October 9, 2026, as per AD Ports’ filing on the stock exchange. Upon completion, L’imad will attain complete ownership of the ports and logistics enterprise, subsequently empowering AD Ports to pursue its long-term aspirations, such as investments and strategic acquisitions, free from the limitations and expectations imposed by public market participation.

Following L’imad’s announcement of its intent to acquire AD Ports, the company appointed HSBC Bank Middle East as its independent financial advisor on August 21. L’imad posits that the offer presents shareholders with an appealing prospect to secure immediate value while enabling AD Ports to concentrate on sustained growth, including potential acquisitions, unencumbered by the constraints associated with a public listing.

This move by L’imad aligns with its ongoing strategy to accumulate strategic assets in Abu Dhabi, forming a diversified portfolio encompassing energy, utilities, ports, logistics, aviation, urban development, and industrial sectors. Last year, L’imad was established and has since been expanding its portfolio. In July, Sheikh Khaled bin Mohamed, the Crown Prince of Abu Dhabi, sanctioned L’imad’s framework for strategic sectors in terms of investment and operations.

In the preceding month, L’imad finalized its acquisition of the remaining shares in Abu Dhabi National Energy Company, known as Taqa, through its subsidiary, Abu Dhabi Power Corporation, thereby increasing its stake to 100% from 98.12%. Taqa is presently awaiting regulatory clearance to be delisted from the Abu Dhabi Securities Exchange.

L’imad also holds a substantial share in Abu Dhabi real estate developer Modon Holding. Meanwhile, AD Ports Group announced an impressive 86% increase in its second-quarter net profit, attributed to the company's strategic diversification of trade routes beyond the Strait of Hormuz, which remains under blockade due to ongoing hostilities in the region.

For the three-month period ending in June, the net profit attributable to AD Ports’ shareholders amounted to Dh596.7 million.