Egypt’s last state holdout says it won’t sell Alexandria Containers stake to AD Ports

The last piece of the Egyptian government’s blocking stake in Alexandria Container and Cargo Handling (ALCN) is now formally off the table. The General Authority for Alexandria Port, which holds 7.63% of the EGX-listed port operator, told ALCN that it has no intention of selling any of its shares to AD Ports subsidiary Black Caspian Logistics, according to an EGX filing (pdf). The company disclosed the letter alongside a restatement of the Holding Company for Maritime and Land Transport’s refusal, putting the full 43.9% state bloc on the record.

What’s left is a tender against a sliver of freefloat. With ADQ’s side at 51.33% and the state at 43.9%, ALCN’s freefloat is roughly 4.8% — and Black Caspian’s offer tenders for up to 4.3% of the company. Full acceptance would leave the port operator with almost no tradable stock — the EGX requires a minimum 10% free float to remain listed — a question the FRA will have to answer before the offer clears. At EGP 27.47 per share, the offer sits about 17% below the stock’s current trading price of EGP 33.20, giving freefloat shareholders little incentive to tender.

REFRESHER- The Holding Company confirmed in June it wouldn’t sell, bearing out our exclusive that the Transport Ministry — which sits above two of ALCN’s shareholders, the Alexandria Port Authority and the Holding Company for Maritime and Land Transport — would reject the sweetened bid.

Why this matters: ALCN’s two terminals, spanning roughly 1.6 km of quay across the Alexandria and El Dekheila ports — a complex that handles about 60% of Egypt’s foreign trade — and wired into the national rail network, carry a combined capacity of 1.5 mn TEUs. That’s only about three-quarters of the 2 mn TEU of container capacity the two ports are designed to handle. ALCN is also a cashcow, with revenue of EGP 8.37 bn in FY 2024/25 and an adjusted EBITDA margin of 64%. Its income has grown 228% since 2022.