Abu Dhabi’s IHC plans to exit minority investments worth up to $25 billion

ABU DHABI: Abu Dhabi conglomerate International Holding Company plans to exit from non-strategic minority investments worth between $20 billion and $25 billion over the next 18 months, its chief executive told Reuters.

IHC has interests in sectors including healthcare, energy, real estate, agriculture and mining, with global investments in the U.S., India, Latin America and Africa. It is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, brother of the UAE president and national security adviser.

The company is at an “advanced stage” regarding at least two divestments, with one anticipated in early 2026, CEO Syed Basar Shueb told Reuters.

“We have somewhere close to $20 to $25 billion of holdings in companies where we have a minority interest… which we will exit over the next 18 months I can say,” Shueb said.

“First we try to buy the control, if we cannot and it is strategic to someone else, then definitely we will exit.”

IHC has over 1,400 subsidiaries, according to its website.

Last month IHC merged three portfolio companies into 2PointZero Group with combined assets of around 120 billion dirhams ($32.67 billion), and finalised a $1.1 billion sale of Multiply Group’s district cooling business.

It divested its 42.54% stake in real estate company Modon Holding to L’imad Holding earlier this month. It has, however, backed its majority investment in Aldar Properties, dismissing recent market speculation.

STRONG GROWTH AND CASH GENERATION

The group’s third quarter revenue jumped 35% year-on-year to 29.9 billion dirhams, while profit attributable to equity holders rose to 4.67 billion dirhams, up from 3.66 billion dirhams a year ago.

Shueb said the company was comfortable with its cash generation and any financing needs were easily fulfilled by bank lending. He did not expect IHC to tap debt markets in the near term.

The company could deploy $30 billion to $35 billion over an 18-month cycle funding its investments through a mix of debt and equity, Shueb said.

Among potential investments, Shueb said IHC is in advanced discussions for an energy project in the central African state of Chad, to provide solar and wind power, and battery solutions, chiming with the UAE’s increased interest in the country.

IHC’s market capitalisation has ballooned since 2020 to almost $240 billion.