Abu Dhabi conglomerate International Holding Company is to sell its stake in two of Indian tycoon Gautam Adani’s companies, in a blow to the business empire battling allegations of accounting fraud.
IHC announced in April 2022 that it was investing about $500mn each in renewables arm Adani Green Energy and power company Adani Transmission, and a further $1bn in the group’s flagship Adani Enterprises.
At the time, IHC’s chief executive Syed Basar Shueb described the decision to back Adani as a “long-term investment in India”, while Adani Green’s executive director Sagar Adani hailed it as “a start of a wider relationship between [t]he Adani Group and IHC”.
But the conglomerate, which is chaired by Sheikh Tahnoon bin Zayed al-Nahyan, one of the United Arab Emirates’ most powerful men, said on Thursday that it had found a buyer for its Adani Green and Transmission stakes.
The decision to exit the companies cuts IHC’s exposure to Adani’s companies by 50 per cent just 18 months after making the investments.
IHC said the Adani disposals were part of its “overall portfolio rebalancing strategy”, and that it was completing regulatory paperwork to complete the transaction with the unnamed buyer. The filing made no reference to its stake in Adani Enterprises.
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