Abu Dhabi sovereign investor L’Imad is moving to take full control of AD Ports Group, offering to buy the shares it does not already own for 6.25 dirhams ($1.70) each.

The proposed cash offer values the UAE port and logistics operator at about 31.8 billion dirhams ($8.66 billion) and represents a 23% premium to its Aug. 14 closing price of 5.10 dirhams.

L’Imad currently controls 75.42% of AD Ports through its wholly owned subsidiary ADQ. The offer would give the Abu Dhabi investment vehicle ownership of the remaining 24.58%, subject to the required regulatory and corporate approvals.

AD Ports shares rose nearly 15% to 5.86 dirhams on Monday, moving closer to the proposed offer price as investors assessed the takeover plan.

Deal gives AD Ports more room to invest

ADQ said taking AD Ports fully private would help the company pursue capital investments and strategic acquisitions. It also expects AD Ports may need to raise additional equity as it expands, while higher debt levels from recent transactions could limit dividend payments.

The move comes as AD Ports works to protect trade flows amid disruption around the Strait of Hormuz. The company has been developing alternative multimodal routes and expanding operations across the UAE as regional tensions affect shipping.

Abu Dhabi tightens control of strategic assets

L’Imad is chaired by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan and is one of the emirate’s major investment vehicles. Global SWF estimates the fund manages about $300 billion in assets.

L’Imad said ADQ has enough resources to meet the cash payment under the offer. Rothschild is advising on the transaction, which will now go through the required procedures before shareholders can decide whether to accept the offer.

AD Ports Group

AD Ports Group, established in 2006, operates across ports, maritime and shipping, logistics, economic cities and free zones, and digital services.

The company has expanded beyond the UAE through investments in international logistics and maritime businesses.

The proposed deal would give L’Imad full ownership of one of Abu Dhabi’s key transport and logistics companies, while giving AD Ports greater flexibility to pursue its investment plans away from the public market.