Alpha Dhabi Holding, a subsidiary of Abu Dhabi-listed conglomerate International Holding Company, acquired a 25.24 per cent stake in Al Qudra Holding as part of its strategic investment plan.
The business strategy of the Abu Dhabi Al Qudra makes it an ideal fit for Alpha Dhabi Holding's growth, it said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.
"Al Qudra’s business strategy is a perfect fit for ADH. This acquisition will add considerable shareholder value as we continue investing in carefully selected industries with sustainable growth potential, as the company is active in unique investment opportunities and has facilitated the development of various projects that meet the local and regional market needs," said Hamad Al Ameri, managing director and chief executive of Alpha Dhabi Holding.
The move to acquire Al Qudra Holding is in line with Alpha Dhabi Holding's expansion plan and future strategy. The company last year allocated Dh8 billion ($2.17 billion) to invest in property, hospitality, health care and petrochemicals and other "promising sectors" in the UAE and abroad.
"ADH has built an Dh8bn investment fund to boost its portfolio by developing, acquiring and investing in companies that reflect our own commitment to both customers and shareholders," Mr Al Ameri said. "Investments like these offer huge potential for adding to our progress and growth in the construction, health care, hospitality, industry, chemicals and investment fields.”
Al Qudra Holding focuses on sustainable development in the region and investing in fundamental growth sectors including real estate, services, hospitality and diversified investments.
Last month, Al Qudra Holding completed the acquisition of Tamouh Investments from International Holding Company with consideration of mandatory convertible bonds worth Dh2.24bn, which will be converted into issued share capital of AI Qudra. Tamouh Investments is a primary developer of key projects in Abu Dhabi, including Marina Square, City of Lights, Fantasy Island and the Royal Group headquarters.
On Monday, Alpha Dhabi Holding bought an additional 17 per cent stake in Aldar Properties after it acquired Sublime 2, Sogno 2 and Sogno 3. The deal brings Alpha Dhabi Holding's overall stake in Abu Dhabi’s biggest developer to 29.8 per cent and significantly expands its property portfolio.
Alpha Dhabi, which has a market value of Dh273bn and was previously known as Trojan Holding, has grown into a regional conglomerate with interests in construction, health care, hospitality and industry after completing a series of acquisitions in 2021.