Abu Dhabi‘s sovereign wealth fund ADQ plans to launch a takeover bid for Aramex (ARMX.DU) by trading shares in the courier firm it does not already own, according to a stock exchange filing on Monday, as it works to strengthen its logistics holdings. The cash offer will be launched through ADQ’s Q Logistics Holding unit at 3 dirhams ($0.82) per share, about a 30% premium to Dubai-listed Aramex’s closing price of 2.31 dirhams apiece, reported by Reuters.
Aramex provides logistics and transportation services
The offer would value the logistics company at 4.39 billion dirhams ($1.2 billion), according to Reuters estimates. Aramex shares rose 14.7% to 2.65 dirhams on Monday. share. Aramex provides logistics and transportation services, including domestic and international express delivery by road, air and sea, and operates in more than 65 countries, according to its website.
ADQ was founded in 2018 and has a broad portfolio of domestic assets, including Abu Dhabi state carrier Etihad Airways and Abu Dhabi Ports Company, through which it owns a 22.69% stake in Aramex. The fund had $225 billion in assets under management as of the end of June, according to a document seen by Reuters.
Q Logistics Holding and Aramex
Q Logistics Holding said in a statement on Monday that it sees Aramex as “potentially central” to helping ADQ achieve its goals for the wider local economy. He added, however, that Aramex’s recent performance and financial performance require a “strategic and operational transformation” that is expected to be “complex, capital intensive and time-consuming.” As of Monday, “no agreements have been reached between Q Logistics Holding and Aramex,” ADQ said in a statement, without giving a timeline for the offer. Rothschild is acting as financial advisor to Q Logistics Holding, with Emirates NBD Capital as lead manager.