Abu Dhabi’s AD Ports Group has announced an AED 2.9 billion ($790 million) acquisition of an 80% stake in Dubai-based Global Feeder Shipping (GFS), implying a 100% enterprise value of AED 3.7 billion ($1 billion).

The ports company said the acquisition of GFS had been fully funded through a new acquisition loan.

“This earnings and value-accretive strategic investment significantly broadens AD Ports Group’s global feeder shipping footprint and contributes to its long-term strategy to become one of the world’s premier short-sea and feeder shipping players,” the company said in a statement to Abu Dhabi Securities Exchange (ADX).

The company said GFS’s last 12 months revenue had been $1.085 billion with a net profit of $481m.

“Our base case scenario factors a correction of 60% in the freight rates over the coming years from the peak rates in 2022,” the statement concluded.