Abu Dhabi's ADQ plans to launch takeover of Aramex, boost logistics portfolio

Abu Dhabi sovereign wealth fund ADQ plans to launch a takeover offer for Aramex bidding for the shares it does not already own in the courier firm, according to a bourse filing on Monday, as it works to bolster its logistics holdings.

The cash offer will be launched through ADQ's unit Q Logistics Holding at a price of 3 dirhams ($0.82) per share, a premium of around 30% to Dubai-listed Aramex's closing price on Friday of 2.31 dirhams a piece.

The offer would value the logistics firm at 4.39 billion dirhams ($1.2 billion), according to Reuters calculations. Shares in Aramex opened up 14.7% at 2.65 dirhams per share on Monday.

Aramex provides logistics and transportation services including domestic and international express delivery via road, air and sea, with operations in over 65 countries, according to its website.

ADQ was established in 2018 and has a broad portfolio of domestic assets, including Abu Dhabi state carrier Etihad Airways and Abu Dhabi Ports Company, through which it holds a 22.69% stake in Aramex.

The fund had $225 billion in assets under management at the end of June, according to a document seen by Reuters.

Q Logistics Holding said in a statement on Monday it believed that Aramex "has potential to play a central role" to help ADQ achieve objectives for the wider local economy.

It added, however, that Aramex's recent results and financial performance required a "strategic and operational transformation," which it expected to be "complex, capital intensive and to take time."

U.S. stocks sank on Friday, with the S&P 500 erasing its 2025 gains after an upbeat jobs report stoked fresh inflation fears, reinforcing bets that the Federal Reserve will be cautious in cutting interest rates this year.

As of Monday, "there are no arrangements entered into between Q Logistics Holding and Aramex", ADQ's unit said in the statement, without providing a timeline for the offer.

Rothschild is acting as Q Logistics Holding's financial adviser while Emirates NBD capital is the lead manager.