IHC gets green light for Sammaan Capital deal

Abu Dhabi’s International Holding Company has secured regulatory approval to take a 41.5 percent stake in Sammaan Capital, an Indian finance company, for almost $1 billion.

The deal, which was announced last October, will be completed in multiple stages, according to UAE state-run news agency Wam. IHC has acquired 26.9 percent of Sammaan so far.

The balance will be acquired through share warrants, which will be converted into fully paid equity shares. In addition, a mandatory tender offer will be made to acquire up to 26 percent of Sammaan’s expanded share capital from shareholders.

On completion, IHC will be classified as a promoter of Sammaan under Indian law, with the right to appoint a majority of the board and play an active role in its direction.

The Indian business will become part of Judan Financial, the international holding company set up by IHC in February.

Sammaan, which is listed on the BSE and NSE in Mumbai, is one of India’s largest non-banking financial companies. Its main focus is mortgage lending and it has 220 branches.

It closed 0.7 percent higher on the two stock exchanges on Tuesday.

IHC shares, which trade on the Abu Dhabi Securities Exchange, closed 0.2 percent lower at AED390. The stock is down 2 percent so far this year.

• Gulf family offices put US exposure under a microscope
• Mena equities calm as bargain hunting begins
• Brent heads for record monthly jump as Houthis widen conflict