Abu Dhabi’s International Holding said it will invest AED1.4bn ($400m) in the $2.5bn follow-on share sale floated by Indian billionaire Gautam Adani’s flagship.
IHC, which invested almost $2bn in Adani’s companies last year, is making the investment in Adani Enterprises through its subsidiary Green Transmission Investment Holding, it said in a statement on Monday.
The investment is 16% of Adani Enterprises’ follow-on share sale.
Abu Dhabi firm backs Adani share sale
The announcement by IHC comes as Adani seeks to restore confidence in his business empire after a scathing report on the tycoon’s business empire by US short seller Hindenburg Research.
“Our interest in Adani Group is driven by our confidence and belief in the fundamentals of Adani Enterprises Ltd; we see a strong potential for growth from a long-term perspective and added value to our shareholders,” Abu Dhabi-based IHC CEO Syed Basar Shueb said.
“The advantage of the FPO is the historical reference for the company’s earnings report, company’s management, business practices, and much data to bank on before making any investment decision”
On Friday, IHC led by Sheikh Tahnoon Bin Zayed Al Nahyan, the UAE’s national security adviser and brother to the president, said its business decisions are based on facts after the report.
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