13 December 2021 – The National News – www.thenationalnews.com
Al Qudra Holding board also approved a foreign ownership limit of 30% of outstanding shares, subject to regulatory approval
The board of Abu Dhabi’s International Holding Company formally agreed to merge IHC subsidiary Al Tamouh Investments with Al Qudra Holding, strengthening IHC’s hold in the property and hospitality sectors.
“The transaction will be completed through the transfer of shares in Al Tamouh Investments in return for unsecured mandatory convertible bonds issued by Al Qudra Holding,” a statement issued on Sunday said.
The board of directors of Al Qudra Holdings also approved a new foreign ownership limit of 30 per cent of outstanding shares, subject to regulatory approval. Previously, IHC said, only UAE citizens were permitted to own shares in the company.
“Our decision to introduce the potential for foreign ownership paves the way for a widening of the shareholder base in future,” Abdulla bin Mohamed bin Butti Al Hamed, Chairman of Al Qudra Holding, said.
A few days previously, the IHC board approved the sale and transfer of IHC entities’ stakes in Al Tamouh Investments to Al Qudra Holding.
Tamouh Investments is a primary developer of key projects in Abu Dhabi, including Marina Square, City of Lights, Fantasy Island and the Royal Group headquarters.
“This transaction brings together two significant investment companies, active in major sectors across the region, including real estate and hospitality. We believe this provides a solid financial and operational platform for further growth,” Syed Basar Shueb, chief executive and managing director and board member of IHC, said.
Property markets in Abu Dhabi and Dubai, like other global property investment centres, have rebounded strongly, as pent-up demand and supportive stimulus measures offered by the government boosted economic activity.
The UAE’s overall real estate market is recovering at a fast pace from the onset of the pandemic as people now working remotely upgrade to larger homes with outdoor space.
Abu Dhabi registered Dh16.2 billion ($4.4bn) of property transactions during the third quarter of 2021, and the UAE capital is bringing in more measures to attract those looking to invest and live in the city.
Al Qudra Holding, operating as an investment holding company, has investments and partnerships in sectors including oil and gas, banking and finance, through its subsidiaries.
As part of its diversification strategy, the company has investments in property, services and hospitality, among other sectors.
IHC became Abu Dhabi’s most valuable listed company on June 27, when its shares surged by about 15 per cent after the listing of its subsidiary Alpha Dhabi.
The multi-sector conglomerate’s profit in the nine months to the end of September surged 308 per cent to Dh7.2bn, boosted by a twofold increase in gains during the third quarter driven by a series of acquisitions and a strong performance among its subsidiaries.