Large investment by ADP
Abu Dhabi Ports (ADP), which operates ten hubs and terminals in the United Arab Emirates, has agreed to buy a controlling stake in Dubai-based Global Feeder Shipping (GFS), investing approximately USD 800 million to this end. This comes hot on the heels of ADP investing around USD 140 million in Egypt in September.
GFS, which has been in business for more than 30 years, owns and operates 26 vessels with a total capacity of about 72,000 teu. The company covers a maritime network connecting the UAE to India, Pakistan, Sri Lanka, Egypt, Sudan, Djibouti, Yemen, Saudi Arabia, Bahrain, China, South Korea, Vietnam as well as other destinations.
The acquisition, which has been funded through a loan, is for an 80% stake in GFS. The firm, whose founders will retain 20% of the shares, will retain its management and staff.
In a media release ADP said that “the acquisition will further strengthen our hub and spokes model and link core markets in the Gulf, the Indian Subcontinent, the Red Sea area and Turkey to our gateways, including Khalifa Port2.” The acquisition represents ADP’s largest international investment so far. (sh)