Abu Dhabi-- UAE-based AD Ports Group announced on Monday its intention to launch a cash mandatory tender offer (MTO) to acquire an additional stake in Alexandria Container & Cargo Handling Company (ALCN), which would give the group majority ownership and control of one of Egypt’s largest container terminal operators.

Under the proposed transaction, AD Ports aims to acquire around 32 percent of ALCN through the MTO, securing a controlling stake, the company said in a statement on Monday.

The group already owns 19.3 percent, purchased in November from the Saudi Egyptian Investment Company (SEIC), a subsidiary of Saudi Arabia’s Public Investment Fund (PIF), through a block trade.

The transaction is expected to be completed in the second quarter of 2026, subject to regulatory approvals in Egypt.

In line with Egyptian stock exchange rules, a mandatory tender offer is required once a shareholder intends to acquire one-third of a listed company.

AD Ports Group said it would offer EGP 22.99 per share under the MTO, adding that Egyptian governmental shareholders, who hold the majority of the remaining shares in ALCN, will maintain their current stakes.

The group is currently assessing several financing options to fund the acquisition and said it would select the most value-accretive structure.

ALCN operates two strategic container terminals at Alexandria and El-Dekheila ports on the Mediterranean, and gaining control of the company would support the group’s expansion in Egypt and strengthen its presence along one of the world’s most important maritime corridors.

“By acquiring a majority stake in ALCN, we would be maximizing our engagement and expanding our operational footprint along one of the world’s most critical maritime routes,” said Captain Mohamed Juma Al Shamisi, managing director and Group CEO of AD Ports Group.

He added that the investment aligns with the group’s strategy to deepen partnerships and expand operations in Egypt, one of its fastest-growing foreign markets.

The acquisition is expected to boost AD Ports Group’s revenues by more than three percent, based on ALCN’s performance in the 2024–2025 fiscal year.

ALCN reported revenues of EGP 8.37 billion and EBITDA of EGP 5.36 billion in FY2024/2025, translating into an EBITDA margin of 64 percent.

The company also generated EGP 4.93 billion in operating cash flow and held a net cash position of EGP 9.7 billion as of June 2025.

Established in 1984 and listed on the Egyptian Exchange since 1995, ALCN has a combined container capacity of 1.5 million TEUs and handled 1.07 million TEUs in FY2024/2025, implying a utilization rate of around 71 percent.

Its terminals feature a total quay length of about 1.6 kilometres and are directly connected to Egypt’s national rail network, providing multimodal connectivity for global shipping lines.

Major clients include Mediterranean Shipping Company (MSC), Evergreen Marine, and Hapag-Lloyd.

The Alexandria terminals are strategically located at the heart of global trade routes, with the Suez Canal accounting for 12–15 percent of trade and nearly 30 percent of container traffic, according to the Atlantic Council.

ALCN’s terminals represent around 60 percent of total container capacity in the Alexandria area.

AD Ports Group said the acquisition would unlock operational synergies through innovation in terminal management, digitalization, and sustainability, leveraging the group’s advanced technologies and operational standards.

Since 2022, AD Ports Group has significantly expanded its investments in Egypt across container shipping, terminal operations, maritime agency, and cargo services.

The group plans to inaugurate the $200 million Noatum Ports Safaga terminal in 2027, develop cruise terminals at Safaga, Hurghada, and Sharm El-Sheikh, and operate KEZAD East Port Said, a 20-square-kilometre industrial and logistics park near the Mediterranean entrance to the Suez Canal under a 50-year renewable usufruct agreement signed in 2025.