AIL board of directors approves the acquisition of Aramex from Abraaj for a consideration of AED 681.3 million

The board of directors met and approved the proposed acquisition of Aramex International Limited (Aramex), the regional logistics giant, for a total consideration of $185.4 million (AED 681.3 million).

Abdullah Al Mazrui, Chairman, AIL, said "Our objective is to create the largest regional logistics provider. Aramex is the leading regional company in this sector and operates out of its hub in Dubai". He added that "the acquisition of Aramex will jump start our efforts, and provide AIL with over $18 million in profits during 2005, enabling AIL to become profitable from its first year. The parties have agreed on all the acquisition details and we shall aim to close it shortly."

Commenting on the acquisition, Arif Naqvi, Chief Executive Officer, Abraaj Capital, which bought Aramex in 2002, said: "The acquisition is a sign of Aramex's strength as one of the leading logistics companies in the region. The acquisition will provide AIL's investors with an exciting and solid opportunity to invest in this region's logistics industry. We trust that AIL is well placed to realise the great market potential for its investors. "

As part of the deal, Fadi Ghandour, has also been appointed by the Board as the CEO of AIL. Commenting on the importance of the acquisition, Mr. Fadi Ghandour, who was until recently, President and CEO of Aramex said: "AIL, with its strong capital base, and the support of its newly appointed directors, will take Aramex, which has always been a successful company in the logistics industry, to greater heights. There are still a number of acquisitions in Aramex's pipeline, which we expect to announce in the coming months and will further consolidate our position within the region".

The company's initial public offering ran from March 2 to March 12. It offered a total of about 550 million shares to the public at a price of Dh1 per share. The issue was oversubscribed by about 80 times.

Based in Dubai, AIL is the first UAE company of its kind to operate in the GCC - a region which has enjoyed tremendous growth in logistics, courier services and supply chain management over the past two decades. The company will be listing its shares on the Dubai Financial Market (DFM) within the next two to three weeks.

Aramex is the leading provider of total transportation solutions in the MENA region and Indian-Subcontinent, offering express delivery, freight forwarding and logistics solutions. In 2004, the company registered a net profit of US$13 million and had recorded a better than ever performance in the first quarter of 2005 by increasing its net profits by 84% to $4.1m as compared to $2.2m for the same period last year. Aramex has recently embarked on a series of acquisitions, including SMS in Pakistan and Infofort in the UAE. These acquisitions, which are all synergistic in nature, are expected to add substantially to Aramex's performance in coming years.