Abu Dhabi’s sovereign wealth fund, ADQ, has announced plans to launch a takeover offer for courier company Aramex, aiming to acquire the shares it does not already own. The move is part of ADQ’s strategy to strengthen its logistics holdings, according to a bourse filing on Monday.
The bid will be made through ADQ’s subsidiary, Q Logistics Holding, at a price of 3 dirhams ($0.82) per share. This represents a 30% premium to Aramex’s closing price of 2.31 dirhams on Friday. The offer values the Dubai-listed logistics firm at approximately 4.39 billion dirhams ($1.2 billion), based on Reuters calculations.
Following the announcement, Aramex’s shares surged by 14.7% to open at 2.65 dirhams per share on Monday.
Aramex is a global provider of logistics and transportation services, including domestic and international express delivery by road, air, and sea. The company operates in over 65 countries, according to its website.
ADQ, established in 2018, manages a diverse portfolio of domestic assets, including Abu Dhabi state carrier Etihad Airways and Abu Dhabi Ports Company. Through the latter, ADQ currently holds a 22.69% stake in Aramex. The fund had $225 billion in assets under management as of June, according to a document reviewed by Reuters.
In a statement, Q Logistics Holding expressed confidence in Aramex’s potential to play a key role in advancing ADQ’s broader economic objectives for Abu Dhabi. However, the company acknowledged that Aramex’s recent financial performance and results necessitate a “strategic and operational transformation.” This transformation, the statement noted, is expected to be “complex, capital intensive, and to take time.”
Despite the announced plans, Q Logistics Holding clarified that no formal agreements have yet been reached with Aramex. The company did not provide a specific timeline for the offer.
Rothschild has been appointed as Q Logistics Holding’s financial adviser, while Emirates NBD Capital will serve as the lead manager for the transaction.
ADQ’s proposed acquisition reflects the fund’s ongoing efforts to diversify and strengthen its portfolio, particularly in the logistics and transportation sectors, which are critical to Abu Dhabi’s long-term economic strategy. The move also underscores the growing regional competition in logistics and e-commerce, positioning Aramex as a central player in achieving ADQ’s objectives.
