Abu Dhabi's Alpha Dhabi Holding is prepping to seek shareholder approval for the sale of stakes in several subsidiaries as it pushes forward with a plan to streamline its infrastructure holdings. The move signifies a strategic shift for the ADX-listed investment conglomerate, aiming to create a more cohesive infrastructure portfolio.
The crux of the proposal involves selling a 49% stake in Alpha Dhabi Construction Holding (ADCH), a wholly-owned subsidiary, to ADQ, a prominent state investor, or one of its affiliates. Alpha Dhabi Holding intends to retain a controlling 51% stake in ADCH, ensuring continued influence over its construction arm.
Beyond the construction sector, Alpha Dhabi also seeks shareholder approval to offload the entirety of the shareholdings held by its subsidiaries, Alpha Dhabi Hospitality Holding LLC and Murban Energy Limited, in various hospitality and tourism-related ventures. These entities include ADH Hospitality RSC Ltd, Murban (BVI) Holding Inc. , and Hill View Resorts (Seychelles) Limited.
The proposed buyer for these hospitality assets is the National Corporation for Tourism & Hotels PJSC (NCTH), a heavyweight player in the UAE's tourism sector. The sale consideration would involve NCTH issuing newly minted shares in its capital to Alpha Dhabi or its designated units. This share issuance would effectively provide Alpha Dhabi with a stake in NCTH, potentially granting them a foothold in a broader hospitality portfolio.
Analysts suggest that Alpha Dhabi's consolidation strategy reflects a calculated move to optimize its asset base. By streamlining its infrastructure holdings, the company can potentially enhance operational efficiency and potentially unlock greater value for shareholders in the long run. The deal with ADQ, a state-backed entity with a proven track record, could also bolster investor confidence in Alpha Dhabi's construction arm, ADCH.
On the hospitality front, the proposed sale to NCTH presents Alpha Dhabi with an opportunity to potentially gain exposure to a wider range of tourism assets. While relinquishing full ownership of its hospitality holdings, Alpha Dhabi could secure a strategic stake in NCTH, potentially benefiting from the expertise and market reach of this established tourism player.
The upcoming shareholder vote will be a crucial juncture for Alpha Dhabi. Securing shareholder approval would pave the way for the proposed asset sales and mark a significant step towards the company's consolidation goals. The outcome of the vote will be closely watched by investors and industry observers alike, with keen interest in how this strategic shift will reshape Alpha Dhabi's future trajectory.