ID :
51847
Mon, 03/23/2009 - 13:43
Auther :
Shortlink :
https://oananews.org//node/51847
The shortlink copeid
Abu Dhabi buys stake in Daimler
An Abu Dhabi company with Government links has agreed to buy a Dh9.73 billion (US$2.65bn) stake in the owner of Mercedes-Benz, in a deal that could bring electric-car manufacturing to the Emirate according to a report in "The National."
The deal between Aabar Investments and Daimler is one of the most prominent examples to date of the Government’s strategy of developing domestic industry in partnership with household brands from the West.
“Daimler is an iconic brand and a financially strong company with a reputation for excellence worldwide,” said Khadem al Qubaisi, the chairman of Aabar. “We believe that our future co-operation will be beneficial for Aabar and create social and economic benefits for Abu Dhabi and the UAE.”
Daimler will receive €1.95 billion (Dh9.73bn) for the 9.1 per cent equity stake, a much-needed capital injection in an especially difficult year for carmakers.
Aabar will pay €20.27 per share. Daimler plans to issue more than 96 million new shares in the company to Aabar, representing a 10 per cent increase in total share capital.
The two firms will co-operate on developing electric cars and new materials used in car manufacturing, and also establish a training centre in Abu Dhabi to prepare Emiratis for work in the car industry.
Aabar was spun off from the Government’s Mubadala Development Company as an independent energy investment company three years ago, but has steadily shifted its focus to property and financial services. It is listed on the Abu Dhabi securities exchange.
In September, the company sold a Dh6.6 billion bond to the International Petroleum Investment Company (IPIC), a Government investment fund. The bond can be converted by IPIC into majority ownership of Aabar.
Earlier this month, Aabar purchased bonds worth Dh230.3m from UniCredit, the largest lender in central and eastern Europe.
Financial help from Abu Dhabi could not come quickly enough for Daimler, which was hit by the financial crisis a little over a year after it ended its failed partnership with Chrysler, the US car manufacturer.
Its shares have fallen more than 45 per cent since September. European carmakers overall are forecast to reduce production by 25 per cent this year, according to the European Automobile Manufacturers Association.
The deal between Aabar Investments and Daimler is one of the most prominent examples to date of the Government’s strategy of developing domestic industry in partnership with household brands from the West.
“Daimler is an iconic brand and a financially strong company with a reputation for excellence worldwide,” said Khadem al Qubaisi, the chairman of Aabar. “We believe that our future co-operation will be beneficial for Aabar and create social and economic benefits for Abu Dhabi and the UAE.”
Daimler will receive €1.95 billion (Dh9.73bn) for the 9.1 per cent equity stake, a much-needed capital injection in an especially difficult year for carmakers.
Aabar will pay €20.27 per share. Daimler plans to issue more than 96 million new shares in the company to Aabar, representing a 10 per cent increase in total share capital.
The two firms will co-operate on developing electric cars and new materials used in car manufacturing, and also establish a training centre in Abu Dhabi to prepare Emiratis for work in the car industry.
Aabar was spun off from the Government’s Mubadala Development Company as an independent energy investment company three years ago, but has steadily shifted its focus to property and financial services. It is listed on the Abu Dhabi securities exchange.
In September, the company sold a Dh6.6 billion bond to the International Petroleum Investment Company (IPIC), a Government investment fund. The bond can be converted by IPIC into majority ownership of Aabar.
Earlier this month, Aabar purchased bonds worth Dh230.3m from UniCredit, the largest lender in central and eastern Europe.
Financial help from Abu Dhabi could not come quickly enough for Daimler, which was hit by the financial crisis a little over a year after it ended its failed partnership with Chrysler, the US car manufacturer.
Its shares have fallen more than 45 per cent since September. European carmakers overall are forecast to reduce production by 25 per cent this year, according to the European Automobile Manufacturers Association.
