Abu Dhabi’s ADQ to become majority shareholder in Aramex

Aramex testing drone and roadside bot deliveries in Dubai. ADQ is set to acquire a 58 per cent majority stake in Aramex. Photo: Aramex

Abu Dhabi’s ADQ will become the majority shareholder in Aramex following a successful voluntary tender offer, submitted by Q Logistics Holding, an ADQ subsidiary.

ADQ will hold a 58 per cent majority stake in the Middle East’s largest courier company, subject to the successful completion of the deal. This includes shares owned by Abu Dhabi Ports, which is also majority-owned by the Abu Dhabi-based investment and holding company, ADQ said on Tuesday.

AD Ports Group currently owns a 22.69 per cent stake in Aramex.

“As the majority shareholder in Aramex, we have plans to leverage our extensive track record of growing local companies into globally competitive market leaders for the benefit of Aramex and all its stakeholders,” said Mansour AlMulla, deputy group chief executive at ADQ.

In January, ADQ offered to fully acquire Aramex in a deal valuing the company at about Dh4.39 billion ($1.2 billion).

At the time of the announcement, ADQ’s offer price of Dh3 per share represented a 33 per cent premium over Aramex’s stock price of Dh2.31 on the Dubai Financial Market.

Aramex’s shares were trading 0.73 per cent higher at Dh2.78 at 10.26am UAE time on Tuesday.

ADQ said that under Securities and Commodities Authority (SCA) regulations, it can still accept shares from shareholders who did not participate in the initial offer period.

Shareholders must sell shares to ADQ at Dh3 per share by March 24, and that the final share acquisition numbers will be disclosed on March 28, ADQ said.

The offer to gain control of Aramex is the latest in a string of deals for ADQ, which is pushing to expand its local and international portfolio of assets.

With total assets worth $225 billion as of June 30, ADQ has shareholdings in more than 25 companies across sectors including energy, utilities, food and agriculture, health care, pharmaceuticals, mobility and logistics.

Companies in its portfolio include Abu Dhabi National Energy Company, better known as Taqa, Emirates Nuclear Energy Corporation and Abu Dhabi National Exhibitions Company.

ADQ also has a significant asset base in transport and logistics, including Abu Dhabi Ports, Etihad Airways, Abu Dhabi Airports, Etihad Rail, Wizz Air Abu Dhabi and Abu Dhabi Aviation.

Last month, ADQ and Vietnam’s State Capital Investment Corporation, a sovereign wealth fund, signed an initial agreement to explore investment opportunities in the South-East Asian country.

The organisations will partner to assess potential co-investment opportunities that support Vietnam’s economic ambitions and align with its strategic development objectives, state news agency Wam reported at the time.