Abu Dhabi - Mubasher: Safeen Feeders, a wholly owned subsidiary of AD Ports Group, penned a deal with Invictus Investment Company to launch a new international dry bulk shipping service with an initial investment of AED 463 million ($126 million).
Upon the agreement, the two firms will purchase ships through special purpose vehicles (SPVs), owned by Safeen Feeders (85%) and Invictus (15%), according to a bourse filing on Monday.
They will also form a joint venture (JV) to operate the service, in which Safeen Feeders will hold 51% of the project, while Invictus will own the remaining 49%.
As part of future growth plans, five ships of different sizes are expected to be deployed within six months, starting from September 2022.
The new service will be the carrier for Invictus’ dry-bulk trading business, which currently ships over three million tonnes of commodities annually, including wheat and complementary grains.
Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, noted: “This is an important agreement for AD Ports Group as we look to expand the diverse portfolio of international dry bulk services that we provide for customers and strengthen food security in the region and around the world.”
Al Shamisi added: “Aligning Safeen Feeders shipping expertise with Invictus’ diverse sourcing network will help create a significant new operator, with global reach and a modern fleet.”
Amir Abdellatif, CEO of Invictus, said: “This agreement with AD Ports Group ensures our commitment to investing in businesses that add synergies and value to our expanding trading business, and in building strong strategic partnerships. It is further aligned with our focus on investing in fixed assets to strengthen our logistics capacity.”
It is worth noting that Safeen Feeders has recently sealed a deal with Bangladesh-based Saif Powertec Limited to acquire three vessels worth AED 375 million, equivalent to $102 million.
Last June, Invictus started the listing and trading of its shares on the Abu Dhabi Securities Exchange (ADX).
