Abu Dhabi's International Holding Company on Friday announced the stake sale in two Adani Group companies as a part of its "overall portfolio rebalancing strategy." However, the company said its partnership with Adani "remains steadfast" and it is dedicated to the Indian market. The Abu Dhabi-based conglomerate is disposing of stakes in Adani Green Energy and Adani Energy Solutions (formerly Adani Transmission Ltd).
On Friday, in a stock exchange filing, IHC said it has "entered into a definitive agreement with a buyer to dispose of its FDI investment in Adani Green Energy Ltd and Adani Transmission Ltd".
"Our partnership with Adani and dedication to the Indian market remain steadfast," the company said in a statement to Reuters adding that its disclosure to the market aligns with its strategy to rebalance its investment portfolio.
IHC did not disclose information about the buyer or the scale of the deal. The conglomerate stated that its subsidiaries, Green Energy Investment Holding and Green Transmission Investment Holding, have inked an agreement to sell their respective holdings in the two Adani group entities.
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In April 2022, IHC invested in three Adani Group Companies, about $500 million each in Adani Green Energy and Adani Energy Solutions, and a further $1 billion in the group's flagship Adani Enterprises. An announcement from the Adani Group noted that IHC's investment was aimed at supporting and expediting their plan to provide India with 45 GW of non-fossil energy capacity by 2030, representing 9 per cent of India's non-fossil energy.
At that time, IHC's chief executive Syed Basar Shueb described the decision as a "long-term investment in India".
Green Energy Investment Holding holds a 1.26 per cent stake in Adani Green Energy, while Green Transmission Investment Holding possesses a 1.41 per cent stake in Adani Energy Solutions, according to data from the Bombay Stock Exchange.
Notably earlier this month, Adani Green Energy announced that French oil major TotalEnergies would invest $300 million to create a joint venture focused on expanding renewable energy capacity in India.
