The Abu Dhabi National Exhibitions Company (Adnec), as well as its majority ownership interest in Modon Properties, are all wholly owned subsidiaries of ADQ, an Abu Dhabi-based investment and holding company. IHC Capital Holding’s entire stake in Modon is also wholly owned by ADQ.
With a wide portfolio of real estate developments, venues, land plots, and hotel assets, the combined group would have an assumed market capitalization of about Dh44 billion (about $12 billion).
After the proposed deal is completed, Q Holding will give ADQ and IHC Capital a convertible instrument that, upon conversion, will yield about 9,491 million common shares in Q Holding’s capital. The cost for converting the convertible debt into shares of Q Holding is Dh2.70 per share.
According to the offer, Q Holding’s equity is valued at over Dh18.5 billion. Upon completion, ADQ and IHC Capital would hold about 38.7% and 19.4% of Q Holding’s total issued share capital, respectively.
“This proposed offer provides a unique opportunity to generate value by bringing together key real estate and hospitality assets, creating an Abu Dhabi champion that fuels its ambitions. The combined assets would benefit from increased scale and new revenue opportunities that will position it well for future growth,” said Mohamed Hassan Alsuwaidi, UAE Minister of Investment and MD and CEO at ADQ.
“We firmly believe that the proposed transaction of consolidating Abu Dhabi’s leading tourism and real estate assets into Q holding will prove to be significantly beneficial to the growth and development of the industry. We envision this as a strategic alignment that will not only magnify our capacity for exceptional real estate development but also effectively bridge the gap between tourism and real estate sectors that are poised for further growth and expansion,” said Syed Basar Shueb, IHC’s CEO and managing director.
If the board of Q Holding advises moving forward with the transaction, shareholder and regulatory clearances will be required.