Q Holding’s Strategic Milestone: $6.9 Billion Acquisition Deal with Modon Properties and ADNEC

In a historic decision, the board of directors at Q Holding, listed on the Abu Dhabi stock exchange, has given the green light to a transformative acquisition deal valued at AED 25.6 billion ($6.9 billion). This strategic move involves the issuance of 25.6 billion mandatory convertible bonds at AED 1 each, paving the way for the acquisition of significant stakes in Modon Properties PJSC and the Abu Dhabi National Exhibitions Company (ADNEC).

Key Points of the Acquisition:

1. Acquisition of Modon Properties and ADNEC:

• Q Holding is set to acquire the complete shareholding of ADQ Real Estate and Hospitality Investments LCC and IHC Capital Holding in Modon Properties PJSC, a distinguished real estate developer based in Abu Dhabi.
• The deal extends to include the acquisition of ADQ Real Estate and Hospitality Investments LCC’s shareholding in ADNEC, a vital player in the exhibition and events industry.

2. Financial Allocations:

• AED 17 billion will be allocated to ADQ Real Estate and Hospitality Investments, convertible into 6.3 billion new shares in Q Holding.
• AED 8.5 billion in convertible bonds will go to IHC Capital Holding LLC, convertible into AED 3.1 billion new shares in Q Holding.

3. Special Resolution and Capital Increase:

• In tandem with the share acquisitions, the board has endorsed a special resolution, approving an increase in capital from AED 6.8 billion to AED 16.3 billion.
• This adjustment results from converting the issued bonds into shares, fortifying Q Holding’s financial position and paving the way for future growth and expansion.

Strategic Implications:

This visionary move by Q Holding signifies not only a substantial consolidation of its position in the real estate sector but also underscores its commitment to strategic partnerships and transformative growth in the dynamic Abu Dhabi market. The acquisition is poised to reshape the landscape of Q Holding, elevating its standing in the regional business arena.

This significant strategic milestone is set to propel Q Holding into a new era of growth and influence, solidifying its position as a key player in the Abu Dhabi business landscape. Stay tuned for updates as Q Holding charts a course towards unparalleled success in the evolving real estate and exhibition sectors.