Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Abu Dhabi Developmental Holding Company (ADQ), a sovereign fund of Abu Dhabi, has launched a bid to acquire a 100% stake in Aramex, a leader in the transportation and logistics sector operating in over 65 countries.
In a filing with the Dubai Financial Market (DFM), where it is listed, Aramex stated that it had received a notification from Q Logistics Holding, a wholly owned subsidiary of ADQ, regarding its intention to acquire 100% of shares not already held by Abu Dhabi Ports Company, another subsidiary of ADQ.
It may be recalled that ADQ already holds a 22.69% stake in Aramex through its subsidiary AD Ports, which is listed on the Abu Dhabi Securities Exchange.
Aramex said the matter would be submitted to the company’s board of directors. “All the required procedures will be followed in accordance with the rules of acquisition and merger of public joint-stock companies,” the statement added.
Shareholders of the company who choose to accept the offer will receive Dh3 per share, according to a Q Logistics Holding statement posted on the DFM website.
The offer price represents a 33% premium over the last traded price of Dh2.25, a 35% premium over the last month's weighted average price of Dh2.23, and a 32% premium over the three-month weighted average price of Dh2.28.
Following the announcement of the takeover bid, the share price on the DFM jumped nearly 15% to Dh2.65 when the trading closed on Monday. At Dh3 per share offer price, the company is valued at Dh4.39 billion ($1.2 billion).
No definitive agreement has yet been reached between the two parties regarding the terms of the takeover, the statement said.
If the takeover is finalised, ADQ will hold a 100% stake in Aramex through two of its subsidiaries — Q Logistics Holding and AD Ports.
Established in 2018 and wholly owned by the Government of Abu Dhabi, ADQ is an active global sovereign investor with a focus on critical infrastructure and supply chains. Transport and logistics is one of its priority sectors, with significant assets in its portfolio, including Abu Dhabi Ports Company, Etihad Airways, Abu Dhabi Airports Company, Etihad Rail Company, Wizz Air Abu Dhabi and Abu Dhabi Aviation.
Commenting on the takeover bid, Vijay Valecha, Chief Investment Officer at Century Financial, said: “The ADQ has a well-diversified logistics portfolio covering all forms of transportation – land, water, and air. However, one aspect it lacks is the supply chain system that connects retail participants, i.e., residents, and this move from ADQ can be considered bridging this gap.”
According to the data made available by Century Financial, Aramex’s revenue grew by 18% YoY to Dh1.59 billion ($432.9 million). The freight and logistics market is projected to be worth Dh73.8 billion ($20.11 billion) in 2024, contributing about 8% of the UAE’s overall GDP. By 2030, the sector is expected to rise at a CAGR of 7.01% to reach Dh110.9 billion ($30.19 billion). “These numbers show that there is more room for growth in the sector,” Valecha said.
Samer Mardini, Chief Investment Officer at Yorklyn Asset Management, described the bid as a “strategic move” that could elevate Abu Dhabi’s standing as a global logistics hub. “Combining Aramex with assets like Abu Dhabi Ports and Etihad Rail creates powerful synergies, boosting efficiency and growth.”
The 33% premium offered reflects strong confidence in Aramex’s future prospects and provides shareholders with a compelling deal. According to Mardini, this acquisition goes beyond business; it positions Abu Dhabi as a pivotal player in global trade while reshaping the region’s logistics sector.
