Alpha Dhabi Holding brings Gordon Technologies’ stake to new venture with ADNOC Drilling

Alpha Dhabi Holding brings Gordon Technologies’ stake to new venture with ADNOC Drilling

ADNOC Drilling holds 51 per cent in the venture, with both having equal representation on the board of directors. The JV’s financial results will be accounted for by ADNOC Drilling through the equity method starting from Q1-2024 financials.

The JV - and the 25 per cent Gordon stake - should create 'value accretive returns' to both shareholders and will be 'synergistic' with ADNOC Drilling’s business. "It will also support ADNOC Drilling’s long-term dividend growth profile," said a statement.

"Since Alpha Dhabi’s minority stake acquisition of Gordon Technologies in 2022, we have supported its growth strategy in the US market - and put the foundations in place for expansion to the Middle East," said Hamad Al Ameri, Managing Director and Group CEO of Alpha Dhabi.

As for Gord Technologies, the company has zero leverage and its acquisition is 'economically accretive' to the JV partners from a 'profitability, valuation multiple, cash flow generation and dividend potential standpoint'. It will also likely have a FY2023 free cash flow yield of more than 10 per cent. 

Alpha Dhabi Holding brings Gordon Technologies' stake to new venture with ADNOC Drilling