Abu Dhabi conglomerate International Holding Company (IHC) has announced its decision to sell its stakes in two of Gautam Adani’s companies, Adani Green Energy and Adani Transmission. This comes as a blow to the Adani Group, which has been facing allegations of accounting fraud. IHC had initially invested around $500 million each in Adani Green Energy and Adani Transmission, along with an additional $1 billion in Adani Enterprises. However, IHC’s decision to exit these companies reduces its exposure to Adani’s businesses by 50% just 18 months after making the investments. The sale is part of IHC’s overall portfolio rebalancing strategy.
The undisclosed buyer for IHC’s stakes in Adani Green and Adani Transmission has been finalized, and IHC is currently completing regulatory paperwork to finalize the transaction. It is important to note that IHC’s filing did not mention its stake in Adani Enterprises. The decision to sell the stakes in Adani’s companies comes eight months after US short seller Hindenburg Research accused the Adani Group of accounting fraud and stock market manipulation. Adani has strongly denied these allegations. The sale of the stakes in Adani Green and Adani Transmission suggests significant losses for IHC, as the shares in both companies are trading below the price at which IHC bought into them.
IHC’s decision to sell its stakes in Adani Green Energy and Adani Transmission is seen as a setback for the Adani Group, which has been battling allegations of accounting fraud. This move by IHC reduces the conglomerate’s exposure to Adani’s businesses by half, just 18 months after making significant investments. The undisclosed buyer for these stakes has been finalized, and IHC is currently going through the necessary regulatory procedures to complete the transaction. While the filing made no mention of IHC’s stake in Adani Enterprises, the sale of the stakes in Adani Green and Adani Transmission suggests that IHC may face significant losses, as the shares of both companies are currently trading below the price at which IHC initially invested. This development comes after the accusations of accounting fraud and stock market manipulation made by US short seller Hindenburg Research, although Adani has vehemently denied these allegations.
The sale of IHC’s stakes in Adani Green Energy and Adani Transmission is part of the conglomerate’s broader strategy to rebalance its portfolio. The buyer for these stakes has been confirmed, though the price at which the stakes are being sold has not been disclosed. It is worth noting that IHC’s decision to exit these companies is a blow to the Adani Group, as it reduces IHC’s exposure by 50%. The decision comes at a time when the Adani Group has been working to regain investor confidence after the allegations of accounting fraud made by Hindenburg Research. The sale of the stakes in Adani Green and Adani Transmission suggests that IHC may face substantial losses, considering the current trading prices of these companies’ shares.