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AD Ports to buy majority stake in Egypt's Transmar & Transcargo Intl

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Logistics Update Africa News
AD Ports to buy majority stake in Egypt's Transmar & Transcargo Intl

 AD Ports Group has agreed to acquire a 70 percent equity stake in International Associated Cargo Carrier B.V., which wholly owns two Egypt-based maritime companies Transmar International Shipping Company (Transmar) and Transcargo International S.A.E. (TCI). This the first international acquisition finalised y AD Ports Group. "The total purchase consideration (enterprise value) of this transaction amounts to AED 514 million ($140 million)," according to a statement from AD Ports.



The acquisition will be fully funded from AD Ports Group's existing cash reserves, which stood at over AED 3 billion (approximately $810 million) as of March 31, 2022, the statement added. Transmar is a regional container shipping company that operates across the Middle East, Red Sea, Arabian Gulf and Eastern Coast of Africa. In 2021, Transmar handled 109,000 TEUs. "TCI is a terminal operator and stevedoring company, mainly operating out of the Adabiya Port, where it is the exclusive container operator. Its two lines of business are container and bulk cargo services. In 2021, TCI handled 92,500 TEUs and 1.2 million tonnes of bulk cargos."


Together, Transmar and TCI reported last twelve months (LTM) revenue and EBITDA of AED 325 million ($88 million) and AED 108 million ($29 million), respectively. "For full-year 2022, management is on track to deliver triple-digit growth year-on-year driven by both volume and rate increases. These synergistic and value-accretive acquisitions provide AD Ports Group with a market-leading platform for further growth opportunities in Egypt, but also in the entire Red Sea and Gulf regions."


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