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AD Ports unveils merger transaction with AED 7bn equity value

AD Ports unveils merger transaction with AED 7bn equity value
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AD Ports Group
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Abu Dhabi – Mubasher: AD Ports Group announced the merger of KEZAD Communities with Al Eskan Al Jamae LLC (EAJ) to develop Abu Dhabi’s largest integrated staff accommodation company which will have an equity value of nearly AED 7 billion.

AD Ports noted that the merger process would be carried out through an equity share swap with no cash exchange, adding that it will hold a controlling majority stake in the new entity, according to a press release.

Following the transaction, KEZAD Communities will be the largest staff accommodation company in Abu Dhabi, holding a managed and owned capacity of 135,000 beds. Meanwhile, the combined entity will enable KEZAD Group to secure integrated staff accommodation solutions for its customers.

KEZAD Communities is part of Khalifa Economic Zones Abu Dhabi (KEZAD Group), which operates under AD Ports’ Economic Cities and Free Zones. Established in 2005, KEZAD Communities ran its business under ZonesCorp.

EAJ, an Abu Dhabi-based staff accommodation owner and operator, is a real estate development and management firm that owns and operates ICAD Residential City in Mussafah.

Abdullah Al Hameli, CEO of Economic Cities and Free Zones at AD Ports, said: “This merger with EAJ significantly expands the number of staff accommodation assets under our control and extends the range of support services we can offer to our customers.”

Al Hameli added: “The merger enhances KEZAD Communities’ staff accommodation business and provides an opportunity to enhance the quality and sustainability of staff communities across the UAE.”

Saeed Khalfan Al Kaabi, CEO of EAJ, commented: “EAJ has pioneered a progressive and sustainable approach to the delivery of much-needed group housing development in Abu Dhabi and across the UAE, and this legacy will be extended through the expertise, resources, and reach of KEZAD group moving forward.”

In the first nine months (9M) of 2022, the revenues of KEZAD Communities and EAJ amounted to AED 275 million and AED 205 million, respectively.

During January-September 2022, the earnings before interest, taxes, depreciation, and amortisation (EBITDA) of KEZAD Communities and EAJ reached AED 168 million and AED120 million, respectively.

In 9M-22, AD Ports logged net profits attributable to the equityholders worth AED 917.05 million, a hike from AED 590.04 million during the January-September 2021 period.