Abu Dhabi's IHC adds stake in top UAE builder with new deal

Abu Dhabi

INTERNATIONAL Holding Co (IHC), which has transformed itself into the United Arab Emirates' (UAE) second-most valuable listed company, has become one of the biggest shareholders in Abu Dhabi's largest property developer.

Abu Dhabi-based IHC said on Monday it had bought a 45 per cent stake in Alpha Dhabi Holding, but did not provide details of the transaction. With the deal, IHC will become a shareholder in Aldar Properties PJSC, as Alpha Dhabi acquired a 12.2 per cent stake in the developer last month.

"The acquisition of a substantial stake in Alpha Dhabi Holding will add a significant scale to IHC," said chief executive officer Syed Basar Shueb. "The move will increase and diversify our investment vertical, as we continually seek strategic partnerships with local and international players." IHC had started talks to buy Alpha Dhabi, then known as Trojan Holding, in March. The company has amassed a portfolio spanning real estate to utilities and healthcare to food services through a flurry of deals. Its shares have soared more than 110 per cent this year.

Its market capitalisation of about US$43 billion is the second-biggest in the UAE, only behind Emirates Telecommunications Group Co PJSC and higher even than the country's biggest bank. IHC shares were up 3.4 per cent as at 11am local time.

IHC is ultimately controlled by the Royal Group, a conglomerate that lists Sheikh Tahnoon Bin Zayed Al Nahyan as chairman. Sheikh Tahnoon is the brother of Abu Dhabi's crown prince, Mohammed bin Zayed al Nahyan, who is considered the emirate's de facto ruler. BLOOMBERG