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Abu Dhabi’s IHC plans to invest $381m in Adani Enterprises

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DUBAI, Jan 30 (Reuters) – Abu Dhabi International Holdings Ltd. (IHC.AD) said on Monday it would invest AED1.4 billion ($381.17 million) in Adani Enterprises (Adel.NS) Subsequent public offering.

IHC’s statement comes as the Indian company, which is owned by Asia’s richest man, Gautam AdaniAdani is already facing a $65 billion loss in market value after its rebuttal to criticism by US short sellers failed to reassure investors.

“Our interest in Adani Group stems from our confidence and belief in the fundamentals of Adani Enterprises Ltd; we see strong growth potential over the long term and add value to our shareholders,” said Syed Basar, CEO of IHC Shueb said in a statement. statement.

IHC, the largest listed company in Abu Dhabi, Invested $2 billion in Adani Group last yearincluding Adani Enterprises.

Adani Group hits back at Hindenburg Research report last week flagged question Regarding the Adani Group’s debt levels and use of tax havens.

Adani say it complies with Comply with all local laws and make required regulatory disclosures.

Investors’ reaction to Hindenburg’s criticism will be tested this week by Adani Enterprises’ $2.5 billion follow-on share offering that closes on Tuesday.

“The advantages of an FPO (following offer) are historical references to corporate earnings reports, corporate governance, business practices, and a wealth of data that can be consulted before making any investment decisions,” Shueb said in a statement, which did not mention The Hindenburg Report or its implications.

IHC spokesman Ahmad Ibrahim said the company does not comment on the activities of other businesses as a matter of policy.

Shueb said the company “is closely monitoring international markets for new prospects, and we will continue to explore additional opportunities outside our traditional markets in 2023.”

Abu Dhabi Enterprise Group is chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the UAE national security adviser and brother of the UAE president. It has rapidly emerged as the dominant player in the Abu Dhabi stock market, with two of its subsidiaries among the top four companies by valuation.

IHC hopes to increase its global acquisitions by 70% this year, with a focus on clean energy and food processing, the company said.

($1 = 3.6729 UAE Dirhams)

Reporting by Yousef Saba; Editing by David Goodman and Jane Merriman

Our standards: Thomson Reuters Trust Principles.

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