AD Ports Group Appoints HSBC as Financial Adviser for L'imad Takeover Bid

AD Ports Group, the integrated port, logistics chain and free zone operator, has appointed HSBC to advise on the planned takeover bid by Abu Dhabi sovereign investment arm L’imad.

During a board meeting held via video conferencing, company directors discussed the potential transaction and resolved to appoint HSBC Bank Middle East as financial advisers to oversee the deal, according to a statement filed with the Abu Dhabi Securities Exchange. No deadline was provided for the completion of the transaction.

L'imad recently announced its intention to acquire 100 per cent of the AD Ports Group shares it does not currently own to expand its logistics portfolio. The voluntary conditional cash offer is being made through its wholly owned subsidiary, ADQ, which already holds a 75.42 per cent stake in AD Ports Group.

The offer price of Dh6.25 ($1.70) per share represents a 23 per cent premium over the closing price of Dh5.10 prior to the August 17 announcement, valuing the company at Dh31.8 billion. Furthermore, the offer exceeds the one-month and three-month volume-weighted average prices by 25 per cent and 31 per cent, respectively, and stands 95 per cent higher than the initial public offering price of Dh3.20 recorded during the ADX listing in February 2022.

L'imad stated that the proposal provides shareholders with an attractive opportunity to secure certain and immediate value. Subject to regulatory approval, the transaction will enable AD Ports Group to pursue long-term strategic objectives and acquisitions more effectively, free from the funding constraints and short-term return expectations associated with public markets.