AD Ports raises its GFS stake to 81%

AD Ports is doubling down on one of the crown jewels in its shipping portfolio. The Abu Dhabi-listed logistics giant lifted its stake in Dubai-based Global Feeder Shipping (GFS) to 81%, spending AED 1.1 bn to acquire an additional 30% holding and tighten its grip on the business, according to a press release (pdf).

The transaction saw AD Ports exercise a call option secured when it first bought a 51% stake in GFS in early 2024. The additional shares were acquired at the same enterprise valuation agreed upon two years ago, implying a total value of AED 3.67 bn for the feeder operator. The logistics giant is using a mix of debt and asset monetization for the transaction.

Why it matters: GFS has a foothold in the GCC, the Indian subcontinent, Africa, eastern Asia, and Mediterranean regions, and AD Ports says it’s one of its most “strategically significant assets.” It transported 2.8 mn TEUs last year, and since AD Ports acquired its initial stake in 2024, GFS has generated cumulative EBITDA of more than AED 1.8 bn. A higher ownership tightens its grip on a firm that widens AD Ports’ network at a time of heightened trade volatility.

GFS proved its value in the past few months: Beyond its operations across key corridors, AD Ports said the firm “through a sustained period of maritime disruption [...] has maintained and expanded trade connectivity where other operators withdrew, ensuring the uninterrupted flow of cargo for customers across the GCC region, whilst serving the Indian subcontinent, Red Sea, Far East, Mediterranean, and Africa regions — reinforcing AD Ports Group’s role as a reliable enabler of trade through volatility.”

IN CONTEXT- The logistics giant has been steadily expanding its footprint in recent months, helping it hedge against ongoing logistics disruptions. Earlier this month, it expanded into Brazil with a USD 835 mn terminal operator acquisition. It’s also been deepening its footprint within Europe’s logistics network, expanding its presence in Africa, and looking to secure access across the Middle Corridor.