Abu Dhabi’s IHC, Alpha Dhabi to invest $50m in Elon Musk’s SpaceX

Abu Dhabi-based Alpha Dhabi Holding and International Holding Company (IHC) will invest $50m in California-based aerospace company SpaceX founded by billionaire and Tesla CEO Elon Musk.

“We are pleased to announce that the company has decided to invest in SpaceX through Alpha Dhabi Partners Holding LLC – a subsidiary of the company for a value of $25m,” Alpha Dhabi said in a disclosure to the Abu Dhabi Securities Exchange (ADX) where it is listed.

The management is currently working on the completion of all necessary procedures, subject to obtaining the regulatory approvals, it added.

Meanwhile, IHC which had already acquired stakes in SpaceX through a private equity fund back in 2020, plans to plow another $25m in the aerospace entity. “We are pleased to announce that IHC has decided to increase the investment in SpaceX through IHC West Investment – Sole Propietorship LLC (a subsidiary of the company) for a value of $25m,” IHC said in a filing to ADX.

SpaceX designs, manufactures and launches rockets and spacecraft. with the ultimate goal of making life multiplanetary. It also operates Starlink a satellite internet service offering high-speed, low-latency broadband internet.

IHC and its subsidiaries have also previously announced several other investments including a partnership with DAL Group for agricultural development in Sudan, and Multiply’s acquisition of a stake in New York data-driven marketing firm YieldMo. Earlier this year, it signed a $2bn investment agreement with Indian conglomerate Adani Group, to infuse primary capital in three of its portfolio companies, as well as acquired a 70 per cent stake in Arena Events Group for Dhs239.8m.

Read: Abu Dhabi’s IHC to invest Dhs7.3bn in India’s Adani Group

Meanwhile, Alpha Dhabi Holding recorded a net profit of Dhs5.1bn in 2021, compared to Dhs218m reported in the previous year.

Read: UAE’s Alpha Dhabi Holding posts Dhs5.1bn in net profit for 2021