Is ADP eyeing stakes in Egyptian cargo handling firms? Abu Dhabi Ports (ADP) has reportedly submitted an initial offer to acquire a controlling stake in state-owned Egyptian firms Port Said Container and Cargo Handling (PSCCHC) and Damietta Container and Handling (DCHC), Al Mal quotes sources close to the matter as saying. The bid would rival Qatar Investment Authority’s investment arm Maha Capital Partners’ ongoing negotiations with the company.

Background: The negotiations with Qatar have stalled over the size of the stake Maha Capital wants to acquire, with the Egyptian state reluctant to cede control of the companies.Qatar had inked an MoU to invest in Egypt’s port infrastructure, while also pledging to invest USD 5 bn here to help shield us from the fallout from the war in Ukraine.

Details are vague: It’s not clear how big of a stake AD Ports is eyeing in the two companies, or how much it is willing to pay.

The company has big plans for the Egyptian firms, if the acquisition goes through: ADP wants to help the firms raise their production capacity and develop their operations, the sources are quoted as saying.

What’s next: The offer will be presented to the board of directors of the Holding Company for Maritime Transport, the parent firm of the two companies, sources told Al Mal. ADP revealed to the source that negotiations have reached advanced stages.

ADP is a big investor in Egypt: Just earlier this week, ADP signed a concession agreement to develop and operate a container terminal at Egypt’s Safaga Port for USD 200 mn. ADP has also signed two 15 year agreements collectively worth USD 33 mn, to develop cement terminals at Al Arish Port and West Port Said Port. Last year, the group also acquired a 70% stake in Egyptian shipping and logistics firm International Associated Cargo Carrier for USD 140 mn.

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