Abu Dhabi’s International Holding Company (IHC) offloaded a 1.83% stake in Adani Energy Solutions (AESL), the power distribution arm of Indian conglomerate Adani, for INR 17.37 bn (c. AED 727 mn) via open market transactions, The Economic Times reports, citing Bombay Stock Exchange and National Stock Exchange of India data. The identity of the buyers was not disclosed.

What we know: The block was executed through IHC affiliate Envestcom Holding, which sold nearly 22 mn shares at an average price of INR 790 apiece. Following the sale, Envestcom’s holding in AESL dropped to 0.85% from 2.68%.

Background: IHC originally invested USD 2 bn (c. AED 7.3 bn) across Adani Green Energy, AESL, and Adani Enterprises in 2022. It had announced plans to offload stakes in Adani Green and AESL in September 2023, effectively cutting IHC’s exposure to Adani by 50%. Its subsidiary, Green Energy Investment, sold its 1.26% stake in Adani Green, while Green Transmission sold its 1.41% holding in Adani Energy Solutions. In March, IHC also USD 210 mn worth of shares in Adani Enterprises through two other affiliates, though that stake was later acquired by Envestcom.

REMEMBER- Adani is in hot water: The move comes as Adani Group continues to face scrutiny, following a US court indictment in November of last year alleging bribery to secure electricity contracts — a charge the conglomerate has dismissed. Still, IHC raised its stake in Adani Enterprises to over 5% only a week after it said it would divest its stakes in Adani Energy and Adani Green.

IN OTHER M&A NEWS-

DFM-listed Union Properties’ facilities management subsidiary ServeU acquired HouseKeeping and House Keeping Domestic Workers for AED 100 mn, according to a disclosure (pdf). Around 90% of the purchase was funded through bank financing. House Keeping will maintain its brand under ServeU’s umbrella, it said in a press release.

About the firm: House Keeping is said to be the country’s second-largest provider of outsourced domestic workforce and soft facilities management services, with a network of 8.9k domestic workers.
Upside for shareholders: The acquisition is set to start contributing to ServeU’s bottom line from this month, adding around 23% to revenue and boosting EBITDA by 33%, according to the press release.

REMEMBER- Union Properties has been streamlining its balance sheet: Union Properties is on track to fully repay its debt at the end of the year, after securing a conditional AED 700 mn sale in Motor City. The Motor City developer cut its legacy debt to AED 575 mnby the end of 2024, after repaying AED 850 mn to Emirates NBD under a February settlement and striking a separate agreement with Dubailand.

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