Daimler Shares Rise On Abu Dhabi Firm's $2.7 Bln Investment
CNN:LONDON (Dow Jones) -- Shares of Daimler climbed as much as 8% Monday after Abu Dhabi's Aabar Investments agreed over the weekend to invest 1.95 billion euros ( $2.7 billion) in the luxury-car maker.
Terms call for Aabar to acquire about 96.4 million new shares at 20.27 euros each, a 5% discount to Friday's closing price.
The deal will give the Abu Dhabi company a 9.1% stake and make it the biggest shareholder in the German company (DAI), ahead of the Kuwait Investment Authority, whose stake will fall to some 6.9%.
Aabar's largest investor is the Abu Dhabi government's International Petroleum Investment Co.
The group invests in several sectors, including energy, infrastructure, real estate and financial services. Late last year, it agreed to purchase AIG Private Bank from American International Group (AIG) for $273 million.
Cash from the deal will "further improve Daimler's sound financial position," the car maker said, adding it will cooperate with Aabar on several projects. These will include development of electric vehicles, production of new materials for automotive manufacturing, and social projects such as the development of training centers in Abu Dhabi. (...more)
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