UAE's L'imad Plans AED 7.8 Billion Acquisition of Remaining AD Ports Shares

en.Wedoany.com Reported - Abu Dhabi sovereign investor L'imad is seeking full control of AD Ports Group. Its wholly-owned subsidiary ADQ has notified the AD Ports Group board of its intention to launch a voluntary all-cash tender offer for the 24.58% of shares it does not already hold. According to a disclosure filing with the Abu Dhabi Securities Exchange (ADX), the offer values AD Ports at approximately AED 31.8 billion, with the acquisition of the remaining shares requiring around AED 7.8 billion.

The offer price is AED 6.25 per share, representing a 23% premium over AD Ports' closing price on August 14, and 95% above its IPO price of AED 3.20 per share in February 2022.

L'imad believes that AD Ports' next phase of growth will be "complex, capital-intensive, and long-term," potentially requiring additional equity financing or expanded borrowing. Several recently announced agreements have increased the group's leverage, which may limit dividends and short-term shareholder returns. Full ownership would free AD Ports from the constraints of short-term public market return expectations, providing greater financial flexibility for capital expenditure, mergers and acquisitions, and operational adjustments.

AD Ports is the core asset of L'imad's ports and logistics platform, which also includes Etihad Rail and logistics company Aramex. AD Ports Group has built a network spanning ports, shipping, logistics, and economic zones across more than 50 countries.

Earlier this month, L'imad took the same approach with Abu Dhabi National Energy Company (Taqa), acquiring the final 1.88% of shares it did not hold to bring the utility company fully under its control. Diego Lopez, founder and managing director of Global SWF, told EnterpriseAM that the AD Ports move "will create another fully-owned platform that is and can be highly active in acquisitions overseas."

AD Ports currently has several acquisitions still in progress. The group holds AED 5.89 billion in undrawn credit facilities, including accordion features, which can be used to cover pending transactions: the acquisition of Brazilian CLI agricultural bulk terminal operator (enterprise value of AED 3.1 billion, expected to close by the end of Q3 2026); and the acquisition of Germany's MBS Logistics (valued at AED 300 million, expected to close in Q4 2026). Additionally, in June the group completed a 30% increase in its stake in Global Feeder Shipping for AED 1.1 billion, raising its holding to 81%.

Lopez compared this full-ownership model to the preference of Saudi Arabia's Public Investment Fund (PIF), which has historically favored wholly owning its subsidiaries and investment platforms. He believes this structure could streamline L'imad's investment decisions and give AD Ports a "clearer backer" in competing for international market share against DP World and Saudi Global Ports Company. He described the ports industry as one that is "increasingly disrupted."

Wolfgang Lehmacher, former head of supply chain and transport industries at the World Economic Forum, suggested that the real test lies not in how many ports Abu Dhabi can hold, but in whether cargo can be diverted before alternative options disappear when a shipping route closes.

ADQ has issued a notice of intent, not a binding offer. ADQ must still obtain regulatory approvals and complete due diligence before publishing a formal offer document containing acceptance terms and deadlines. Once the formal document is delivered, the AD Ports Group board will send a circular to shareholders recommending whether to accept or reject the offer.

Rothschild & Co Middle East is serving as financial advisor for the transaction; Emirates NBD Capital and First Abu Dhabi Bank (FAB) are acting as joint lead arrangers, with EFG Hermes UAE as joint co-arranger. Emirates NBD and FAB are also serving as joint receiving banks, with A&O Shearman as legal counsel.