The International Holding Company, listed on the Abu Dhabi Financial Market, announced that it had increased its stake in India’s Adani Enterprises to more than five percent, days after selling its stake in two other companies in the Adani Group.
International Holding said in a statement on the Abu Dhabi Financial Market website that increasing its stake in Adani reflects its confidence in the Indian company’s ability to expand the scope of its activities in airports, data centers and green hydrogen.
Global Holdings said in a statement that Adani Enterprises has the superior ability to benefit exceptionally from India’s strong growth journey.
Adani Enterprises, the flagship company of billionaire Jatam Adani’s conglomerate, is currently facing cases raised by British short-seller Hindenburg Research in January, alleging that the group was involved in stock manipulation and had accumulated very high debts.
Adani Group has denied all allegations, and the Indian Markets Regulatory Authority is investigating on the orders of the Supreme Court of India.
The Adani Group said in a statement that after the new investments, the value of Global Holdings’ ownership in the flagship company of the Adani Group is now about 140 billion rupees (about 1.68 billion dollars), according to the closing price of its shares on Tuesday. The group said in the statement that the increase in Global Holding’s stake was “a strong endorsement of the group’s strong capital expenditure plans, governance and transparency.”
For its part, International Holding confirmed last Thursday that it had agreed to sell its investments in Adani Green Energy and Adani Energy Solutions as part of a strategy to rebalance its portfolio.
Last month, International Holdings invested $2 billion in three companies affiliated with the Adani Group, including an investment worth 77 billion rupees ($926 million) in Adani Enterprises for a 3.52 percent stake.
Investors return
Global investors, put off by allegations of short-selling by Hindenburg Research, are starting to come back and invest in the group.
Last month, French oil major Total Energies invested $300 million in Adani Green Energy to form a joint venture to develop wind and solar farms. Earlier, Qatar Investment Authority, a sovereign fund, invested US$500 million to acquire a 2.7 percent stake in Adani Green Energy.
Reuters said that in August, investment company GQG Partners bought 8.1 percent of Adani Power for $1.1 billion in large deals.
2023-10-04 04:26:29
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