AD Ports Group plans to launch a Mandatory Tender Offer to acquire a majority stake in Alexandria Container & Cargo Handling Company, aiming to enhance its operational footprint in Egypt's lucrative logistics sector.

Target Information

AD Ports Group has announced its intention to launch a Mandatory Tender Offer (MTO) to acquire an additional stake in Alexandria Container & Cargo Handling Company (ALCN). This move aims to secure majority ownership in one of Egypt's largest container terminal operators, which runs two vital terminals at Alexandria and El-Dekheila ports. The acquisition would enhance AD Ports Group's operational presence in Egypt, expected to yield significant financial returns.

The MTO targets acquiring approximately 32% of shares in ALCN, building on AD Ports Group's previous acquisition of a 19.3% stake from the Saudi Egyptian Investment Company. Established in 1984 and publicly traded since 1995, ALCN has a combined container capacity of 1.5 million TEUs, with significant profitability demonstrated through its strong revenue and cash flow metrics for FY2024-25.

Industry Overview in Egypt

The logistics, shipping, and port management industry in Egypt is strategically important, bolstered by its geographical position along the Suez Canal, which handles a significant