Abu Dhabi’s IHC Raises Stake In Adani Enterprises

KUALA LUMPUR, Oct 5 (Bernama) -- Abu Dhabi-based International Holding Co (IHC) has increased its stake in Adani Group’s flagship incubator Adani Enterprises Ltd (AEL) to above five per cent, with its holding is now more than US$1.7 billion, as per closing price on Oct 4. (US$1=RM4.72)

According to a statement, IHC has been buying the stock over the past few months, in which the fund increased its holding to 5.04 per cent through open market purchases, and this incremental investment is worth more than US$500 million.

This is more than what the company is expected to fetch from the stake sale in Adani Green Energy (AGEL) and Adani Energy Solutions. It holds 1.26 per cent in AGEL and 1.41 per cent in Adani Energy Solutions, with the value of the stake around US$380 million based on Oct 4 closing.

IHC said the stake sale was part of a portfolio rebalancing strategy, adding that its partnership with Adani would continue.

This move reflected IHC’s conviction in the incubation model of AEL and the inherent strength of airports, data centres, and green hydrogen, in which AEL is poised to uniquely capitalise on India’s robust growth journey.

An Adani Group spokesperson said: “We are delighted with IHC's decision to enhance its investment in Adani Enterprises Ltd, which further validates AEL's standing as a global leader in incubating new businesses, particularly in sustainable infrastructure, developing global aviation infrastructure and equitable energy transition.

“We see IHC’s increased stake as a ringing endorsement of our robust capex plans, governance and transparency. This inter-generational relationship with IHC reflects well on India’s dynamic growth potential and offers substantial returns to our stakeholders.”

Earlier, French major Total Energies invested US$300 million in AGEL; Sovereign fund Qatar Investment Authority (QIA) invested US$500 million for a 2.7 per cent stake, while GQG Capital Partners invested US$900 million for 6.4 per cent.

-- BERNAMA