AD Ports Board Recommends Shareholders Accept L'imad's Dh6.25-a-Share Takeover Bid

The board of directors at AD Ports Group has advised its shareholders to vote in favor of L'imad’s acquisition offer of Dh6.25 per share to secure full ownership of the Abu Dhabi ports and logistics enterprise. This recommendation comes backed by a formal fairness opinion provided by HSBC, the company's independent financial adviser.

Abu Dhabi’s sovereign investment vehicle, L'imad, initiated a voluntary tender offer on August 18 through its wholly owned subsidiary ADQ to purchase the remaining shares of AD Ports. Currently, ADQ holds a 75.42 per cent stake in the organization. Under the terms of the proposal, participating shareholders will be paid Dh6.25 ($1.70) in cash for every tendered share.

This valuation marks a 23 per cent premium over the closing price of AD Ports prior to the announcement and stands approximately 95 per cent higher than the initial listing price of Dh3.20 per share on the Abu Dhabi Securities Exchange back in 2022. Overall, the buyout places the total value of AD Ports at roughly Dh31.8 billion.

Investors have until 3pm on September 15 to finalize their acceptance of the offer, unless an extension is granted. Comprehensive insights regarding the board's official endorsement and the HSBC fairness opinion have been shared publicly via an AD Ports regulatory disclosure submitted to the Abu Dhabi Securities Exchange.

AD Ports engaged HSBC Bank Middle East as its independent financial adviser on August 21 following the initial acquisition intent expressed by L'imad. Representatives from L'imad noted that the proposal offers investors an appealing chance to secure immediate financial value while enabling AD Ports to pursue long-term developmental goals, such as strategic acquisitions, free from the regulatory obligations of a public listing.

This buyout represents L'imad's latest initiative to consolidate essential assets throughout Abu Dhabi, expanding an extensive portfolio covering the energy, utilities, ports, logistics, aviation, urban development, and industrial sectors. Established just last year, L'imad continues to scale its operations under a strategic framework approved in July by Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi.

Earlier this month, L'imad finalized the purchase of remaining shares in Abu Dhabi National Energy Company, also known as Taqa, via its subsidiary Abu Dhabi Power Corporation, elevating its ownership from 98.12 per cent to full control. Taqa is currently awaiting regulatory clearance to officially delist from the Abu Dhabi Securities Exchange. Additionally, L'imad holds a substantial investment in Abu Dhabi real estate developer Modon Holding. Currently, AD Ports manages approximately 40 terminals across the UAE and maintains a business footprint spanning nearly 50 international markets.