Will DFM investors go for quick 'cash in, cash out' on Aramex stock?

Dubai: Want a quick ‘cash in, cash out’ on a stock investment?

Then, the Aramex stock on DFM presents an opportunity as the March 10 deadline approaches for the logistics and courier company to be bought out by Abu Dhabi’s Q Logistics.

The Aramex stock is trading at Dh2.84, having gained 0.35% on Wednesday (March 5) – but still short of the Dh3 a share offer from Q Logistics to Aramex shareholders to surrender their stakes. (Q Logistics’ offer extends to all of the Aramex shareholding except for that held by Abu Dhabi Ports Company, which holds 22.69%.)

So, the Dh2.84 and the offer price of Dh3 represents a near 6% chance for investors. (The actual payment will be made in Q3-2025 once the deal gets through. Completion of the deal, of course, will be subject to regulatory approval. )

It was expected that Aramex stock price would push higher to above Dh2.9 closer to the March 10 deadline. But so far, while trade volumes have been quite solid, the stock price has more or less remained rooted to Dh2.8 levels. (Aramex’s 52-week high, incidentally, is Dh2.93 a share.)

Which does present an opportunity for retail investors with sufficient funds to come in and pick up some Aramex stock in the open market.

“The discount level between Aramex’s current price and the Dh3 a share offer seems high,” said an analyst. “It does represent an opportunity for arbitrage - or ‘easy money - given the high probability of the deal going through with Q Logistics.”

If the Q buyout clears all shareholder and regulator processes, it will come across as one of the bigger corporate deal makings in the UAE in recent times. Aramex has pushed its way back into higher profits after some turbulent years in the post-Covid period.

Details of the Q Logistics offer for Aramex: