Is DFM-listed Aramex about to get bought in mega-deal?

Dubai: The UAE’s logistics sector could be in for a major deal, with Aramex confirming it has received an offer to be bought up.

The offer for the DFM-listed Aramex comes from Q Logistics Holding LLC, a ‘wholly-owned indirect subsidiary ‘of Abu Dhabi’s heavyweight entity ADQ Development Holding.

The latter has submitted a voluntary conditional cash offer to acquire up to 100% of Aramex’s issued and paid-up share capital that is not already held by Abu Dhabi Ports Company. (AD Ports Group has 22.69% in Aramex.)

“This matter will be presented to the company’s (Aramex) 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,” said a statement.

The Aramex stock was up 2% on Friday, with market analysts suggesting that investors were getting a feel of something big happening. The stock closed at Dh2.31, while the 52-week high is Dh2.82.
And today, Aramex has confirmed just that. Q Logistics has emerged as a significant entity within the UAE in its industry, and helped by the backing provided by ADQ.

As for Aramex, it had gone through an extensive round of operational and corporate restructuring in the last 2-3 years, and by the looks of it, the results are being seen in the last set of financials it reported.

The stock is trading at Dh2.67, well within reach of the 52-week high of Dh2.8.
New UAE logistics giant
Market analysts say that if the deal gets through, it will create a UAE based logistics and supply chain mega-entity.

Aramex already has an extensive network, in the region and well beyond. It made its initial run as a courier firm, then was able to capitalise on the ecommerce rush. But in recent years, the logistics sector has seen its share of growth speed-breakers. Aramex went on to report mixed results, which set the stage for an all encompassing restructuring.

Interestingly, Aramex was one of the first listed UAE companies to allow up to 100% ownership by foreign shareholders.Now, if the the Q Logistics deal is done, Aramex will remain a 100% UAE shareholder entity.