Abu Dhabi Company Pulls Daimler Investment


An Abu Dhabi company is abandoning its investment in the German automaker, Daimler.  This report came from a German magazine that received tips from various sources within Daimler. According to the report, Abu Dhabi company Aabar is thinking of transferring over their last 3% shares in Daimler  to Deutsche Bank. Aabar became the largest Daimler investor when the company purchased 9% of its shares in March 2009. The purchase amounted to 1,950 million euros (2,500 million).

Both companies refused to comment on the German magazine’s report. However, two parties directly involved with the companies spoke to Reuters and informed them that Aabar is already preparing to sell its shares in Daimler to undisclosed buyers.

Abu Dhabi Company Pulls Daimler Investment, International Petroleum Investment Co. Deutsche Bank Daimler Abu Dhabi

As per Daimler’s annual report which is usually issued on the first quarter of the year, Aabar had about 3% of the physical shares in the company and a 5%  right to vote. Additionally, they also had a total of 9%, that included actions provided to third parties.

Aside from the statements issued to the public, Daimler’s spokesperson refused to provide further details on the report.

The big question here is, why has Aabar decided to let go of its shares in the German automotive manufacturer and how will the sale affect Daimler?

For one thing, IPIC reported a loss in the fair value of its shareholding in Daimler  in June. The company’s share amounted to 2,250 million in 2011 but only settled a derivative gain of 1,900 million dollars. This report may or may not have influenced Aabar decision to pull its investment in the German company.

As far as how the sale will affect Daimler, that remains to be seen when talks have finally settled.




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