Abu Dhabi's ADQ buys 50% stake in IHC’s Eltizam Asset Management

Abu Dhabi’s holding company ADQ is buying a 50 per cent stake in Eltizam Asset Management, a subsidiary of International Holding Company (IHC), as it continues to boost its portfolio.

IHC issued shares worth Dh111.6 million ($30.4m) in Eltizam to ADQ as part of the deal, it said in a statement on Sunday to the Abu Dhabi Securities Exchange where its shares are traded.

Eltizam is a physical asset management company, which has operations in the UAE and broader GCC. It recently acquired Inspire Integrated, which specialises in infrastructure and real estate management, facilities management and project delivery services.

“Eltizam has a proven record as a successful business model and has an accretive value to ADQ’s portfolio,” said Roque Solabarrieta, investment director at ADQ.

ADQ's portfolio of companies includes the Abu Dhabi Power Corporation, Abu Dhabi Airports, Abu Dhabi Ports, Etihad Rail, healthcare provider Seha, insurer Daman, Abu Dhabi National Exhibitions Company and media companies Abu Dhabi Media and twofour54.

The Abu Dhabi state holding company, which was set up in 2018, entered into a definitive agreement last month to buy Switzerland-based pharmaceutical company Acino, marking its biggest deal within the healthcare and pharmaceuticals sector to date.

It is also looking to buy up to 90 per cent of the share capital of Egypt’s Sixth of October for Development and Investment Company along with Abu Dhabi’s Aldar Properties.

Abu Dhabi-based conglomerate IHC is planning to boost its portfolio through mergers and acquisitions and strategic investments in a number of sectors including property, agriculture, healthcare, food and beverage, utilities and industries.

The company’s acquisition spree in the first six months of 2021 has led to a substantial growth of its balance sheet and its value. At the end of June, it had total assets worth Dh58.32bn, up from Dh14.01bn at the end of last year.

IHC became Abu Dhabi's most valuable listed company on June 27, when its shares surged by about 15 per cent after the listing of its subsidiary Alpha Dhabi.