Abu Dhabi Ports Group’s board has recommended that shareholders accept ADQ’s voluntary cash offer to acquire the remaining shares in the logistics and ports operator, marking a significant step in the proposed takeover that could result in the company being fully owned by Abu Dhabi’s sovereign investment ecosystem.
The recommendation follows a fairness opinion issued by HSBC Bank Middle East, the company’s independent financial adviser, which concluded that the proposed offer price of Dh6.25 per share is fair from a financial perspective for shareholders whose shares are subject to the offer.
In a disclosure to the Abu Dhabi Securities Exchange following a board meeting on August 26, AD Ports said directors had reviewed HSBC’s assessment and resolved to back the transaction. The board stated that HSBC concluded “the proposed offer price of Dh6.25 for each of the shares of the Company that are the subject of the Offer Shares is fair, from a financial perspective, to the holders of those shares.”
AD Ports added that the board had “resolved to recommend that the holders of the Offer Shares accept the Offer” and approved the shareholder circular relating to the transaction.
The offer was submitted on August 18 by ADQ, through L’IMAD, a sovereign investor of the Government of Abu Dhabi. Under the proposal, shareholders who tender their shares will receive Dh6.25 in cash for each AD Ports share. The offer remains open until 3pm on September 15, unless extended.
According to the shareholder circular, ADQ already owns approximately 3.84 billion shares in AD Ports, representing about 75.42 per cent of the company. The offer targets the remaining 1.25 billion shares, or roughly 24.58 per cent of the issued share capital.
The circular noted that the board’s recommendation was based on HSBC’s analysis, which considered valuation methodologies, discounted cash flow analysis, current and historical share prices and publicly available financial and market information. HSBC issued its fairness opinion on August 25.
AD Ports, one of the UAE’s leading trade, transport and logistics companies, has grown rapidly since its 2022 Abu Dhabi Securities Exchange listing, expanding its international ports, maritime and logistics footprint through acquisitions and investments. The group plays a central role in Abu Dhabi’s ambitions to strengthen its position as a global trade and logistics hub.
In the shareholder circular, the board reiterated its position, saying that “the Offer Price for the AD Ports Shares is fair from a financial point of view to the holders of the Offer Shares” and accordingly recommended that shareholders accept the offer at Dh6.25 per share.
Source: Khaleej Times