The Abu Dhabi-based port operator AD Ports Group has acquired a stake in two Egyptian companies. 

AD Ports Group announced today it acquired a 70% stake in International Associated Cargo Carrier B.V., which owns the Egyptian shipping company Transmar and the Egyptian cargo company TCI. AD Ports Group paid just under $140 million for the stake, according to a series of tweets. 

AD Ports Group is part of Abu Dhabi Developmental Holding, aka ADQ, which is a sovereign wealth fund of the United Arab Emirates (UAE). 

Why it matters: Gulf entities have shown an interest in buying Egyptian firms recently. The Egyptian government recently decided to list some state-owned companies for sale, which has attracted buyers from the UAE, Saudi Arabia, and Qatar. ADQ already acquired a stake in Egypt’s Commercial International Bank in April. 

Egypt is in the middle of an economic crisis marked by high inflation and food insecurity due to the Russian invasion of Ukraine. 

Egypt is receiving significant investment from the Gulf amid the crisis. Last month, Egypt and Saudi Arabia signed economic agreements worth $7.7 billion. Qatar also pledged in March to invest $5 billion in Egypt. 

H.E. Falah Mohammed Al Ahbabi, Chairman of AD Ports Group, said: “This is the first overseas acquisition in AD Ports Group’s history and an important milestone in our ambitious international expansion plan. This acquisition will support our wider growth targets for North Africa and the Gulf region and broaden the portfolio of services we are able to offer in those markets.”

“AD Ports Group continues to diversify and take bold steps to expand our reach around the world, in line with the vision and guidance of our wise leadership. We look forward to working with the two new Egypt-based operations and bringing them into the AD Ports Group family.”

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “AD Ports Group continues to build up our presence in Egypt as part of our wider strategy for global expansion.

The acquisition of Transmar and TCI, which both have strong regional presences and deep client relationships, is another key step in increasing our geographical footprint and bringing the benefits of our integrated portfolio of services to more customers. Egypt and the Red Sea coast are increasingly important parts of our global maritime offering, and we believe we are well-placed, thanks to the guidance and continuous support of our wise leadership, to boost trade and economic growth for customers and communities along these routes.”

KPMG LG acted as the financial advisor, PwC as the commercial advisor, and Matouk Bassiouny and Hennawy as the legal advisor to AD Ports Group in these transactions.

EFG-Hermes acted as the exclusive financial advisor and White & Case acted as the legal advisor to Transmar and TCI on this acquisition.

This deal is the latest in a series by AD Ports Group in the Egyptian maritime industry, including agreements with the Egyptian Group for Multipurpose Terminals for the joint development and operation of Egypt’s Ain Sokhna Port and an agreement with the General Authority for Red Sea Ports for the development, operation, and management of cruise ship berths at Sharm El Sheikh Port.