AD Ports Group has signed an agreement to acquire an 80% equity stake in Dubai-based Global Feeder Shipping (GFS) for US$800 million.
GFS has built a large container vessel fleet, featuring 26 owned and operated vessels with a total capacity of 72,500 TEUs, covering the Middle East, Indian Subcontinent and Southeast Asia with services connecting the UAE to India, Pakistan, Sri Lanka, Egypt, Sudan, Djibouti, Yemen, Kingdom of Saudi Arabia, Bahrain, China, South Korea, and Vietnam, among others.
AD Ports Group will look to integrate GFS into its Maritime Cluster, which already offers a comprehensive portfolio of shipping, offshore and subsea services. Aligning GFS services with AD Ports Group companies SAFEEN Feeders and Transmar will make AD Ports Group the world’s largest independent feeder company by vessels owned, with an owned fleet of 35 vessels, and the third largest globally by volumes carried with a total container capacity of 100,000 TEUs.
AD Ports Group said the acquisition will be fully funded through a new acquisition loan. Through this move, it aims to broaden its global feeder shipping footprint and contribute to its long-term strategy to become one of the world’s premier short-sea and feeder shipping players.
“Our acquisition of a majority stake in GFS, which is the largest external investment in our company’s history, will deliver a step-change in the range of services we can offer and significantly enhance our global connectivity,” said H.E. Falah Mohammed Al Ahbabi, chairman of AD Ports Group, who pointed out that the company’s ambition is to become one of the world’s leading shipping companies.
Subject to regulatory approvals, the transaction is expected to close in the first quarter of 2023, while GFS’s existing management will remain in place with the founders retaining a 20% stake in the company.
Citi acted as the financial advisor and A&O as the legal advisor while Roland Berger completed the commercial due diligence and KPMG the financial and tax due diligence for AD Ports Group in this transaction.
