Aramex could soon find itself under new ownership.
Q Logistics, a subsidiary of Abu Dhabi’s ADQ, is offering to buy 100% of the Dubai-based logistics company for 3 dirhams per share, in an offer that values Aramex at roughly 4.5 billion dirhams, or $1.23 billion.
ADQ already holds 22% of Aramex via AD Ports. Its offer is worth a juicy 33% premium over Aramex’s 9 January closing price of 2.25 dirhams.
Aramex shares have shot up 15% since today’s announcement, bringing the company’s market cap to around 3.3 billion dirhams.
Why Aramex?
Founded in 1982 as an express delivery firm, Aramex became the first Arab company to trade on the NASDAQ in 1997 before delisting there and listing on Dubai Financial Market instead.
With a footprint in more than 60 countries, it’s the Middle East’s OG courier.
Aramex’s e-commerce logistics division has been riding the region’s online shopping boom, helping the company post solid growth. The first nine months of 2024 saw revenues jump 11% to 4.63 billion dirhams, while net profits soared 45%.
But it hasn’t all been smooth sailing. Shares have taken a hit thanks to heavy competition from giants like FedEx, DHL, and other ambitious Gulf-based challengers.
After peaking at 4.77 dirhams in October 2021 — when GeoPost snapped up a 20% stake for 1.4 billion dirhams — Aramex has seen a steady decline.
What’s the play?
The offer signals ADQ’s faith in Aramex’s potential, particularly as e-commerce across the Middle East is expected to grow significantly in the coming years.
If you’re a long-term investor banking on Aramex’s regional dominance and ADQ’s ambition, holding — or even buying more — could make sense.
If you’re eyeing quick returns, though, the current premium may already reflect most of the upside, making it a solid time to sell. GeoPost’s acquisiton at a higher price could put off investors, who might wonder if this is the peak value ADQ sees.
The ball is now in Aramex’s court. Its board will consider the deal so keep an eye out for announcements.
This is a developing story. Stay tuned for updates as the deal unfolds.
Edited by Ankush Chibber. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
