Business

IHC’s Two Subsidiaries Divest Entire Stake in Modon Holding

Abu Dhabi’s International Holding Company (IHC) subsidiaries Alpha Dhabi and IHC Real Estate Holding have together divested IHC’s entire 42.54% stake in Abu Dhabi developer Modon, to Abu Dhabi government-owned L’imad Holding Company, which now owns an 84.76% stake in Modon.

IHC received $7.16 billion from the sale, according to two regulatory disclosures with Abu Dhabi Securities Exchange (ADX) last evening. The sale aligns with IHC’s sector concentration framework, which targets no more than 20% exposure to any single sector.

This transaction is a deliberate, strategic move as part of Alpha Dhabi’s active portfolio management program. The divestment is aimed at maintaining balanced exposure across sectors and geographies, while unlocking additional liquidity to support the Group’s diversified growth strategy.

By rebalancing its weighting in real estate and construction, IHC will recycle capital into scalable opportunities across healthcare, technology, energy, food & agriculture, financial services, and related verticals consistent with the Group’s diversified growth strategy.

Since Alpha Dhabi’s acquisition of its stake in Modon, the company has rapidly scaled to a market-leading position. In FY 2024, Modon delivered multi-billion-dollar revenue and strong profitability, with momentum continuing into the first half of 2025. The period also saw record real estate sales and a robust revenue backlog, underscoring the resilience and positive outlook of Modon’s platform, IHC said.

IHC CEO Syed Basar Shueb said that this sale reflected disciplined approach to capital allocation and their commitment to maintaining a well-balanced, diversified portfolio.

“While we continue to see attractive fundamentals in real estate, our strategy is to avoid over-concentration in any single sector. Recycling capital from Modon provides additional liquidity to accelerate investment into other high-growth areas where we believe we can create sustainable, long-term value for our shareholders,” he added.

IHC will continue to actively evaluate opportunities across sectors, building on its proven ability to originate and scale platforms that contribute to resilient cash flows, innovation, and long-term value creation for all stakeholders.

Strategic Investments

Alpha Dhabi Holding Managing Director and Group CEO Hamad Al Ameri said that this transaction, reflects their strategy to invest primarily in Abu Dhabi-based companies that are, or have the potential to become, regional and global champions and exit to deliver superior returns for shareholders.

Alpha Dhabi is actively supporting the growth of its portfolio companies, building scale, diversifying the platform, and creating synergies across businesses to deliver value for shareholders, he said.

“We will continue to recycle capital as part of rebalancing our portfolio and ensuring that we have sufficient liquidity to pursue both organic and inorganic opportunities, he added.

Alpha Dhabi’s portfolio is balanced between steady, recurring income businesses and high-growth, disruptive companies. The Group leverages its scale and agility to capitalise on market and investment opportunities, driving value across its platform. Alpha Dhabi will continue to build a diversified portfolio through investments in sectors and geographies closely aligned with its core areas of expertise.

Global Business Magazine

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