Abu Dhabi's IHC to acquire 43.5% stake in India's Sammaan Capital in ₹8,850 crore deal

Abu Dhabi-based Holding Company (IHC) is set to acquire a 43.5% stake in Indian financial services firm Sammaan Capital in a deal valued at ₹8,850 crore (approximately $997.66 million), making it one of the largest cross-border investments in India's capital markets sector this year.

The board of Sammaan Capital has approved a preferential issue comprising 33 crore equity shares and 31 crore warrants to IHC, each priced at ₹139. The investment will see IHC emerge as the new promoter of Sammaan Capital.

Backed by Sheikh Tahnoon bin Zayed Al Nahyan, UAE's Security Adviser and the brother of the country's President, IHC has been expanding its global investment footprint. The acquisition aligns with its broader strategy to tap into high-growth sectors in emerging markets.

Also read | Sammaan Capital shares gain 25% in six consecutive days of gains — Here's why

IHC will launch a mandatory open offer under the Securities and Exchange Board of India’s (SEBI) takeover code, in accordance with Indian regulations, which will give existing shareholders an opportunity to tender their shares as part of the acquisition process.

Meanwhile, shares of Sammaan Capital Ltd. gained another 5% on October 1, extending gains up to 25% in six consecutive sessions. The last time it gained for six trading sessions in a row, was between June 5 to June 18, 2024, during which it gained for nine trading sessions.

An Extraordinary General Meeting (EGM) has been scheduled for 29 October, during which shareholders will vote to ratify the proposed share issuance and approve amendments to the Articles of Association to accommodate the new ownership structure.

Sammaan Capital's board is optimistic that the move will bring global backing, capital strength, and growth momentum to its operations. With IHC's entry, the firm expects to explore expansion opportunities across asset management, financial services, and fintech.

Abu Dhabi-based Holding Company (IHC) is set to acquire a 43.5% stake in Indian financial services firm Sammaan Capital in a deal valued at ₹8,850 crore (approximately $997.66 million), making it one of the largest cross-border investments in India's capital markets sector this year.

The board of Sammaan Capital has approved a preferential issue comprising 33 crore equity shares and 31 crore warrants to IHC, each priced at ₹139. The investment will see IHC emerge as the new promoter of Sammaan Capital.

Backed by Sheikh Tahnoon bin Zayed Al Nahyan, UAE's Security Adviser and the brother of the country's President, IHC has been expanding its global investment footprint. The acquisition aligns with its broader strategy to tap into high-growth sectors in emerging markets.

IHC will launch a mandatory open offer under the Securities and Exchange Board of India’s (SEBI) takeover code, in accordance with Indian regulations, which will give existing shareholders an opportunity to tender their shares as part of the acquisition process.

Shares of Sammaan Capital Ltd. gained another 5% on October 1, extending gains up to 25% in six consecutive sessions. The last time it gained for six trading sessions in a row, was between June 5 to June 18, 2024, during which it gained for nine trading sessions.

An Extraordinary General Meeting (EGM) has been scheduled for 29 October, during which shareholders will vote to ratify the proposed share issuance and approve amendments to the Articles of Association to accommodate the new ownership structure.

Sammaan Capital's board is optimistic that the move will bring global backing, capital strength, and growth momentum to its operations. With IHC's entry, the firm expects to explore expansion opportunities across asset management, financial services, and fintech.