Abu Dhabi conglomerate IHC seeks acquisition in ‘buyer’ market

Buildings are seen at Sowwah Square on Marayah Island in Abu Dhabi’s central business district, May 7, 2013. REUTERS/Ben Job/File Photo

DUBAI, Aug 10 (Reuters) – Abu Dhabi Group International Holding Company (IHC) (IHC.AD) The company’s chief executive told Reuters on Wednesday that it expected to ramp up its acquisitions, including in India and Turkey, as global market turmoil has created a “buyer’s market”.

Syed Basar Shueb said IHC, the most valuable company on the Abu Dhabi Exchange with a market value of about $167 billion, is targeting companies listed in growth markets, adding that it is also looking at South America and Indonesia.

“The public domain market has indeed corrected itself with respect to certain assets,” he said.

“But in the private sector, it’s still difficult to negotiate with landlords because they’re all still living in an old world with extremely high valuations. It’s not a seller’s market, it’s a buyer’s market.”

IHC, which spans sectors ranging from healthcare to real estate to IT and utilities, made 70 acquisitions this year with a combined value of AED10 billion ($2.72 billion).

Its most high-profile deals include a Dh7.3 billion investment in three companies in India’s Gautam Adani in May.

Rising interest rates and forecasts of a global recession make IHC more selective because private market valuations don’t reflect current market conditions, Shueb said.

He also said the company is pursuing large acquisitions, rather than smaller deals, to boost its profits, although he did not specify how large.

The company on Monday reported a 137% year-on-year rise in first-half net profit to AED10.35 billion.

Shares in IHC have risen more than 120% so far this year to AED348 per share.

The company is chaired by Sheikh Tanoon bin Zayed Al Nahyan, United Arab Emirates national security adviser and brother of President Sheikh Mohamed bin Zayed.

Reporting by Hadeel Al Sayegh; Editing by Barbara Lewis

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