Dubai January 30 2023: International Holding Co., which is controlled by a key member of Abu Dhabi’s royal family, said it will invest 1.4 billion dirhams ($400 million) in Gautam Adani’s $2.5 billion follow-on share sale, saying it believes in the fundamentals of the Indian billionaire’s empire.
IHC is making the investment in Adani Enterprises — which represents about 16% of the total offering — through its subsidiary Green Transmission Investment Holding RSC Ltd., the UAE-based firm said in a statement on Monday. The firm last year invested almost $2 billion in Adani’s companies.
“Our interest in Adani Group is driven by our confidence and belief in the fundamentals of Adani Enterprises,” IHC Chief Executive Officer Syed Basar Shueb said. “We see a strong potential for growth from a long-term perspective and added value to our shareholders.”
Adani Rout Hits $68 Billion as Fight With Hindenburg Intensifies
IHC’s investment comes as Adani seeks to restore confidence in his ports-to-power business following a scathing report by US-based short seller Hindenburg Research, which accused the conglomerate of market manipulation, accounting fraud and operating a web of controlled offshore shell entities in tax havens. Adani Group issued a 413-page rebuttal on Sunday, but the face-off has wiped $68 billion off the market value of its stocks.
IHC is watching the international market closely for new prospects, and will continue exploring further opportunities outside its traditional market this year, Shueb said in the statement. It will also explore business opportunities in Europe, Africa, Asia, and South America.
With investments ranging from Elon Musk’s SpaceX, to a local fishery and Abu Dhabi’s largest property developer, IHC is at the forefront of a drive to diversify the UAE economy and deploy its oil windfall overseas.
The company, whose market capitalization has rocketed to $239 billion since 2019, is controlled by the Royal Group, a conglomerate that lists Sheikh Tahnoon bin Zayed al Nahyan — the UAE’s national security adviser and brother to the president — as chairman.
On Friday, IHC said its business decisions are based on facts after the Hindenburg report was published. Shares in IHC fell as much as 5.2% on Monday before erasing all losses by the close.