EFG Hermes succeeds in completing its advisory services for Abu Dhabi Ports’ acquisition of a 70% stake in Transmar and Transcargo International

This deal is Abu Dhabi Ports’ first investment in the Egyptian market, and is evidence of the growth in demand for logistics services in the Egyptian market and the attractive growth factors that are unique to the sector.

EFG Hermes announced today that the promotion and underwriting division of the leading investment bank in emerging and frontier markets has succeeded in providing its advisory services for Abu Dhabi Ports’ acquisition of a 70% stake in two Egyptian companies operating in the field of maritime transport, stevedoring and warehousing, namely “Transmar”. and Transcargo International (TCI), with a total deal value of $140 million.

EFG Hermes acted as the sole financial advisor, and White & Case acted as legal counsel for the selling party, the investors of Transmar and Transcargo International.

The two companies “Transmar” and “Transcargo International” were established in 1979 by the pioneer of the industry, Mustafa Al-Ahwal, and managed by the Al-Ahwal family, and it has succeeded in establishing itself as one of the leading companies in maritime transport in Egypt and the region in general. The two companies have a proven track record of more than four decades in container shipping, liner operations, handling, stevedoring, warehousing, inland transportation, integrated logistics, and others. The Al-Ahwal family and the executive team will continue to manage the two companies after the transaction is completed.

On the other hand, Abu Dhabi Ports, the buyer party to this transaction, was established in 2006 and has now become one of the main drivers of trade and logistics in the region. The company’s portfolio includes more than 10 ports and terminals in the region, where its activities vary between the ports sector, the industrial cities sector, the free zone, the maritime sector, and the logistics sector. In February 2022, the company’s shares were listed on the Abu Dhabi Stock Exchange, and the market capitalization reached $7 billion by the end of September 11, 2022.

In this context, Mostafa Gad, Co-Head of Promotion and Underwriting Sector at EFG Hermes, expressed his pride in providing advisory services in this huge deal between Transmar, Transcargo International and Abu Dhabi Ports, as the company looks forward to enhancing the capacity of clients. to achieve their operational goals. Gad stressed that this deal is one of the great achievements in the Egyptian logistics sector, which continues to consolidate its position on the regional and international arenas, noting that Abu Dhabi Ports’ entry into the Egyptian market through its first acquisition outside the country in major logistics companies such as “Transmar”. And “Transcargo International” is the starting spark for Abu Dhabi Ports’ expansion journey, as well as linking the Egyptian market with more supply chains around the world. Gad added that “Transmar” and “Transcargo International” will become a link between the economies of the region and promote regional trade through its wide spread in many countries of the region.

Transmar is a leading private container shipping company in the region, founded by the Al-Ahwal family, and its container transportation activities mainly cover the Red Sea region. The company’s history spans more than three decades, as it has succeeded in developing its customer base to include many economic sectors such as petrochemicals, consumer goods, electronic devices, and others.

On the other hand, Transcargo International (TCI) is specialized in stevedoring and warehousing services at Adabiya Port – a strategic port in the Red Sea, whose operations focus on port services, container loading and unloading, and cargo transportation.

Over the past years, EFG Hermes has succeeded in consolidating its leading position in the market thanks to its superior capabilities in providing advisory services in major transactions in the region. In the first 8 months of 2022, the promotion and underwriting sector succeeded in providing advisory services to a group of the most prominent mergers and acquisitions deals in the region, including the sale of a share of the “Of Misr” company – specialized in the production and trading of healthy snacks and coffee, for the benefit of the “Awf Misr Group” Agthia» UAE, one of the leading companies in the field of food and beverages in the region. The company also succeeded in providing advisory services for the sale of a majority stake in the Miswak Dental Clinics Company, the largest provider of dental services and dermatology services in the Kingdom of Saudi Arabia. During the past year, the company succeeded in completing 13 merger and acquisition deals with a total value of $2.4 billion, including Agthia Group’s acquisition of both the Egyptian Atyab Company and the Kuwaiti “Al-Faisal Bakery and Sweets”. In addition, the Promotion and Underwriting Division succeeded in completing the advisory services of Evercare Group, a subsidiary of TPG, to sell a 50% stake in Islamabad Diagnostic Center to Integrated Diagnostic Holding Company, which was the first merger and acquisition transaction executed by EFG Hermes in the Pakistani market.

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