Aabar Investments PJSC (Aabar) of Abu Dhabi is buying 9.1% of in Daimler AG by acquring newly issued shares worth 20.27 Euros or $26.64 per share, close to the current market price, bringing the total investment to 1.95 billion Euros or $2.66 billion. With Kuwait having held an equity interest since 1974, Daimler will have two major shareholders in the future. Following the capital increase, the equity interest held by Kuwait will amount to 6.9%.
Aabar is an investment company headquartered in Abu Dhabi and directly invests in various industries including energy, infrastructure, real estate, automotive and financial services companies. Its largest stakeholder is the International Petroleum Investment Company (IPIC), which has investments worth more than $14 billion in many international companies and is wholly owned by the Government of the Emirate of Abu Dhabi.
Their future cooperation of Daimler and Aabar will focus on joint initiatives for electric vehicles specifically aimed at the reduction of CO2-emissions, the development and/or production of innovative compound materials to be used in automotive manufacturing and social projects such as the establishment of a training center in Abu Dhabi to educate young talent for positions in the automotive industry.
Daimler says the cash inflow from the capital increase will further improve Daimler's sound financial position. At the end of 2008, the equity ratio of Daimler's industrial business was 42.7% and the equity ratio of the entire Daimler Group was 24.3%.
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