Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Q Logistics Holding, a wholly owned subsidiary of Abu Dhabi Developmental Holding Company (ADQ), has set March 10 as the deadline for Aramex shareholders to accept its offer to buy their shares at Dh3 per share. A statement to this effect was posted by Aramex on the website of the Dubai Financial Market (DFM).
Earlier, on January 13, Aramex announced that it had received a notification from Q Logistics Holding regarding its intention to acquire 100% of the issued and paid-up share capital of Aramex not already held by Abu Dhabi Ports Company, another subsidiary of ADQ. Abu Dhabi Ports currently holds 22.69% of Aramex shares, according to data available with the DFM. Geopost SA, a subsidiary of the French state-owned postal service, is another major shareholder with a 28% ownership stake.
The statement specified that Aramex shareholders interested in accepting the offer can do so by either submitting an electronic acceptance form at ipo.emiratesnbd.com/en/aramex or completing and signing the acceptance form in physical form.
Board of Directors of Aramex is meeting on Tuesday to review the offer and will make further announcements on the issue, the statement said.
The voluntary cash offer provides Aramex shareholders an opportunity to liquidate their holdings at an attractive valuation. According to the offer document, the offer price of Dh3 per share represents a 33% premium over Aramex’s last closing share price of Dh2.25 on January 9, 2025. It is 35% premium to the one-month Volume Weighted Average Price (VWAP) of Dh2.23. It is 32% premium to the three-month VWAP of Dh2.28.
Aramex shares were being sold at Dh2.81 when the DFM closed on Monday.
Q Logistics Holding acknowledged that transforming Aramex will require substantial capital investments and may limit short-to-medium-term returns for investors. By bringing Aramex under the ADQ umbrella, Q Logistics Holding aims to leverage its track record in developing national champions within its portfolio.
Since 2019, Aramex has experienced a decline in financial performance, leading to no dividends for 2023. This has reinforced Q Logistics Holding's belief that a strategic and operational transformation is necessary to restore financial stability and unlock Aramex’s full potential.
ADQ, a sovereign investor owned by the Government of Abu Dhabi, has an extensive portfolio of assets in transport and logistics, including: Abu Dhabi Ports, Etihad Airways, Etihad Rail and Abu Dhabi Airports Company. The offer highlights ADQ’s commitment to developing core infrastructure and supply chains to bolster the UAE’s global connectivity.
