AD Ports to Leave Abu Dhabi Exchange in December as L'imad Buys Out Minority Holders

ADQ, a subsidiary of the Abu Dhabi wealth fund L'imad, has built a stake of nearly 99 percent in the ports and logistics operator. Settlement of the squeeze-out is expected on December 22, subject to the end of a period in which shareholders can challenge it, according to AGBI. The company said its general assembly approved the squeeze-out provisions on October 28. A squeeze-out lets a majority owner buy out the remaining minority shareholders whether or not they choose to sell.

"Subsequently, all AD Ports Group's shares will be registered in the name of L'imad and the company will be delisted from ADX," AD Ports said in a statement.

When it goes, the Abu Dhabi bourse will lose one of its biggest infrastructure stocks, and AD Ports will be the second large listed company that L'imad has taken fully private this year. The Abu Dhabi National Energy Company, Taqa, was delisted from the exchange as of September 1, after Abu Dhabi Power Corporation, another L'imad subsidiary, took 100 percent of it in August.

ADQ made its offer for the AD Ports shares it did not own on August 18. Before the offer it held about 75.4 percent of the company. When the tender window closed on September 15, the shares tendered had lifted its holding above 98.5 percent, Gulf News reported, with settlement of the tender expected by October 9. That level cleared the way for the compulsory acquisition of the rest.

The delisting timetable came with a strong quarter. AD Ports said third-quarter revenue rose 48 percent from a year earlier to AED8 billion ($2.2 billion), helped by a 30 percent quarter-on-quarter recovery in its ports cluster. Net profit rose 64 percent to AED975 million. Cash flow from operations reached nearly AED3 billion, about four times the figure a year earlier.

L'imad was formed in January by consolidating ADQ, the eight-year-old Abu Dhabi holding company, which brought $263 billion in assets, 25 investment companies and platforms, and more than 250 group subsidiaries. The fund is chaired by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan. Its ports and logistics platform also includes Etihad Rail Company and Aramex.

The remaining minority shareholders have until the challenge period expires to object. If no challenge succeeds, they will be bought out at settlement on December 22, and AD Ports will then leave the ADX.