Abu Dhabi's Q Logistics clears key milestone in Aramex takeover

Dubai: Abu Dhabi’s Q’s Logistics has reached a milestone in its takeover plans for DFM-listed Aramex.

As of now, its shareholding in the Dubai logistics company totals 63.26% - this exceeds the ‘minimum acceptance conditions’ specified under the UAE regulator’s Mergers & Acquisitions Rules.

Now, this shareholding includes the 22.69% owned by Abu Dhabi Ports Company. Q Logistics and AD Ports Group are part of the Abu Dhabi wealth fund ADQ.

Another 40.57% held by Q in Aramex comes from the latter’s shareholders deciding to sell their stakes to the Abu Dhabi entity. At the end of which, Q had the numbers to take the deal forward to its natural conclusion.

Q was offering to buy from Aramex shareholders at Dh3 a share. (On DFM, the share is trading at Dh2.77. The Q offer values Aramex at $1.2 billion.)

Market analysts say it has been a 'smooth sailing' for Q when it comes to getting the deal done. "That Abu Dhabi Ports Company was already a significant shareholder only made things easier in getting a majority of other shareholders on board," said an analyst.

When it comes to the non-energy space, the Q-Aramex deal represents one of the bigger M&A plays in the UAE.

"There are more deals likely to happen in the UAE corporate space," said an analyst. "Sectors such as healthcare and insurance have already seen some, but remain strong candidates for more.

"While Q-Aramex was the big ticket, there could be a few more in the local and regional logistics space. Real estate remains another choice."