Abu Dhabi’s International Holding Company, one of the first high-profile investors in billionaire Gautam Adani’s conglomerate, has decided to sell its stake in two Adani companies. In a disclosure, IHC said it has “entered into a definitive agreement with a buyer to dispose of its FDI investment in Adani Green Energy Ltd and Adani Transmission Ltd”.
It, however, did not name the buyer.
IHC had in April 2022 invested about USD 500 million each in renewables arm Adani Green Energy and power company Adani Transmission, and a further USD 1 billion in the group’s flagship Adani Enterprises.
At that time, IHC’s chief executive Syed Basar Shueb described the decision to back Adani as a “long-term investment in India”.
IHC said the Adani disposals were part of its “overall portfolio rebalancing strategy”, and that it was completing regulatory paperwork to complete the transaction.
It made no reference to its stake in Adani Enterprises.
The sale comes eight months after US short-seller Hindenburg Research accused Adani Group of accounting fraud and stock market manipulation. Adani has denied all allegations.
The allegations triggered a sell-off that at one point knocked USD 150 billion off the combined stock market value of Adani’s 10 listed companies. Stocks have since recovered some of their losses.
IHC did not disclose the sale price.
