Abu Dhabi - ADQ and IHC Capital Holding, a subsidiary of the listed International Holding Company (IHC), made a bid to merge ADQ’s 100% interest in Abu Dhabi National Exhibitions Company (ADNEC) besides its majority stake in Modon Properties along with IHC Capital’s shareholding in Modon into Q Holding to establish a gigantic regional platform.
The proposed transaction aims to form a regional leader in real estate, hospitality, events, catering, and development of urban projects, according to a press release.
Meanwhile, the merged group would have an implied market capitalisation of nearly AED 44 billion, equivalent to $12 billion, with a broad portfolio of real estate developments, venues, land plots, and hospitality assets.
Once the transaction is closed, Q Holding will issue a convertible instrument for both ADQ and IHC Capital which would convert into nearly 9.49 billion ordinary shares at a price of AED 2.70 per share in Q Holding’s capital.
It is worth noting that the offer implies an equity valuation of around AED 18.50 billion for Q Holding.
After completing the proposed deal, ADQ and IHC Capital would possess nearly 38.70% and 19.40%, respectively, of the entire issued share capital of Q Holding.
Managing Director (MD) and CEO at ADQ, Mohamed Hassan Alsuwaidi, who also serves as the UAE Minister of Investment said: “This proposed offer provides a unique opportunity to generate value by bringing together key real estate and hospitality assets, creating an Abu Dhabi champion that fuels its ambitions.”
Meanwhile, IHC’s CEO and MD, Syed Basar Shueb, commented: “We firmly believe that the proposed transaction of consolidating Abu Dhabi’s leading tourism and real estate assets into Q holding will prove to be significantly beneficial to the growth and the development of the industry.”
If the board of Q Holding accepts the bid, it will be subject to shareholder and regulatory approvals.
It is worth noting that Palms Sports, a subsidiary of IHC, took over security services firm Securiguard Middle East for AED 300 million in July 2023.
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