Abu Dhabi's IHC completes 45% stake purchase in Alpha Dhabi Holding

The transaction follows the IHC board meeting disclosure on March 4, 2021

FG81FD View of new business district at Abu Dhabi Global Market square (ADGM) on Al Maryah Island in Abu Dhabi United Arab Emirates. Alamy
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Abu Dhabi-based International Holding Company (IHC) said it completed a 45 per cent stake purchase in Alpha Dhabi Holding (ADH), a growing real estate and construction sector focused company.

No value for the transaction, which comes after IHC's board meeting disclosure on March 4, 2021, was provided.

"The acquisition of a substantial stake in Alpha Dhabi Holding will add a significant scale to IHC," Syed Basar Shueb, IHC's chief executive, said in a statement to the Abu Dhabi Securities Exchange, where the company's shares trade.

"The move will increase and diversify our investment vertical, as we continually seek strategic partnerships with local and international players and further strengthen our leadership position in the marketplace."

IHC, which is majority owned by Abu Dhabi's PAL Group of Companies, has steadily expanded its portfolio by acquiring businesses in emerging technologies, real estate and health care among others. The company acquired a stake in California-based aerospace company SpaceX through a private equity fund, and has invested in UK-based DNA sequencing firm Oxford Nanopore technologies and New York digital marketing company Yieldmo.

Alpha Dhabi Holding, formerly known as Trojan Holding, has been building a wider portfolio, acquiring businesses in hospitality and industrial sectors and

In March, ADH's subsidiary Sublime Commercial Investment, bought a 12.21 per cent stake in Aldar Properties, the UAE's biggest listed developer, from Mubadala Investment Company for Dh3.5 billion ($953 million).

The latest transaction "places us in a unique position to capitalise on IHC’s robust institutional backing, as we pursue further growth, said Hamad Al Ameri, managing director of ADH.

"We are building a diversified portfolio in line with the UAE’s ambitions to promote private sector development. We look forward to working closely with IHC in the next phase of our journey.”

Alpha Dhabi employs over 22,000 people. The company develops a large range of projects, including mixed-use and high-rise property, mass housing and infrastructure.