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ADQ unit explores offer to buy Aramex stake in cash

Q Logistics Holding said it is 'well positioned to guide and support the transformation of Aramex by becoming a major shareholder' Aramex
Q Logistics Holding said it is 'well positioned to guide and support the transformation of Aramex by becoming a major shareholder'

A subsidiary of Abu Dhabi Development Holding Company (ADQ), a sovereign wealth fund, intends to submit an offer to buy 100 percent of the shares in Dubai-listed logistics company Aramex not already owned by Abu Dhabi Ports Company.

Shareholders accepting the offer of Q Logistics Holding, an indirect subsidiary of ADQ Development Holding, will be paid AED3 ($0.82) per share, Aramex said in a statement to the Dubai Financial Market on Monday.

The offer price represents a 33 percent premium to the last share price of AED2.25 as of January 9 on the Dubai bourse and is subject to regulatory approvals and due diligence.

ADQ wholly owns ADQ Development Holding. Abu Dhabi Ports, 75.42 percent owned by ADQ, holds a 22.69 percent stake in Aramex.

Q Logistics holds no stake in the logistics company.

ADQ’s transport and logistics cluster is one of its four priority segments, which includes Abu Dhabi Ports, Etihad Airways, Abu Dhabi Airports Company, Etihad Rail Company, Wizz Air Abu Dhabi, Q Mobility and Abu Dhabi Aviation.

Aramex is complementary to the existing assets within ADQ’s transport and logistics cluster, the statement said.

Q Logistics Holding believes in being “well positioned to guide and support the transformation of Aramex by becoming a major shareholder”. However, the transformation will be “complex, capital incentive, and take time”.

Rothschild & Co. will be the financial adviser, while Emirates NBD Capital will be the lead manager.

Emirates NBD has been named the receiving agent for the tender offer, while Allen Overy Shearman Sterling will act as the legal advisor for Q Logistics Holding.