Daimler Sells 9.1% Stake to Abu Dhabi firm as German Automaker Searches for Cash
In a move that many analysts see as a need to raise some much needed cash during a time of deepening global recession, Mercedes-Benz' parent company Daimler announced that it has sold a 9.1% stake worth €1.95 billion (US$2.65 billion) to Aabar Investments PJSC (Aabar) of Abu Dhabi. From what we learned, Aabar is an investment company headquartered in Abu Dhabi that directly invests in various sectors including energy, infrastructure, real estate, automotive and financial services companies.Its largest stakeholder is the International Petroleum Investment Company (IPIC), which in turn is wholly owned by the Government of the Emirate of Abu Dhabi. Daimler said that Aabar's 9.1 percent stake makes it the firms largest shareholder, exceeding that of Kuwait's that amounts to 6.9% after the capitol increase.
Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars said "We are delighted to welcome Aabar as a new major shareholder that is supportive of our corporate strategy. We look forward to working together to pursue joint strategic initiatives."
Aabar's Chairman, Khadem Al Qubaisi said: "Daimler is an iconic brand and a financially strong company with a reputation for excellence worldwide. We are delighted to have the opportunity to make this investment and are excited by the commercial potential of our partnership. We believe that our future cooperation will be beneficial for Aabar and create social and economic benefits for Abu Dhabi and the United Arab Emirates. We look forward to working with Daimler to fully realize these opportunities."
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