Aramex has announced at the Dubai Financial Market (DFM) a voluntary conditional cash offer from Q Logistics Holding, a wholly-owned indirect subsidiary of Abu Dhabi’s ADQ Development Holding, to acquire up to 100 per cent of the issued and paid-up share capital of the company.
In a mandatory filing with DFM, Amanda Dahdah, Governance Officer and Board Secretary of Aramex, has written that the “matter will be presented to the company’s Board of Directors and the required procedures will be followed in accordance with the decision of the Chairman of the Board of Directors of the Securities and Commodities Authority No. (18 /R.M) of 2017 regarding the Rules of Acquisition and Merger of Public Joint Stock Companies”.
Aramex said it would make further announcements with respect to any material developments in the matter in due course.
Q Holding does not currently hold a stake in Aramex, but its associate, Abu Dhabi Ports Company (owned 75.42 per cent by ADQ), holds 22.69 per cent of the company’s shares.
Aramex shares see premium
Aramex shareholders, excluding Abu Dhabi Ports Company, who decide to accept the offer will receive AED 3 in cash for each of their shares.
The offer price represents an attractive 33 percent premium to the last traded share price of AED 2.25 on 9 January, 2025 and 35 per cent premium to one-month volume weighted average price (VWAP) of AED 2.23 per share.
ADQ is an active global sovereign investor with a focus on critical infrastructure and supply chains. Its expanding portfolio includes companies across core sectors of the economy, including energy and utilities, transport and logistics, food and agriculture and healthcare and life science.
Transport and logistics is one of ADQ’s four priority clusters and includes significant assets such as Abu Dhabi Ports Company, Etihad Airways, Abu Dhabi Airports Company, Etihad Rail Company, Wizz Air Abu Dhabi, Q Mobility, and Abu Dhabi Aviation.
Q Holding believes that Aramex is complementary to the existing assets within the ADQ transport and logistics cluster, and that “Aramex has the potential to play a central role towards achieving ADQ’s broader vision and objectives for the whole local economy”.
Aramex has faced challenges of declining revenues in recent times but still clocked $1.26 billion for the first nine months of 2024. It had a market cap of $897 million at the time of reporting the Q3 results, with over 16,000 employees and more than 600 offices across the globe. Revenue for the quarter was up 18 per cent year-on-year at $434 million.
Follow us on
