Aabar Investments PJSC, headquartered in Abu Dhabi, knows how to spot a bargain.
With the global auto industry smack in the middle of a huge financial crisis, luxury carmaker Daimler ? parent company of Mercedes-Benz ? has handed over a 9.1 percent stake in the company to Aabar Investments for a cool ?1.9 billion, or about AU$3.7 billion.
With a five percent discount off the 21.23 euro share price, Aabar purchased 96.4 million shares. Before the global economic crisis, Daimler shares were running at 45 euros each. Cripes.
?We are delighted to welcome Aabar as a new major shareholder that is supportive of our corporate strategy,? Daimler CEO Dieter Zetsche said. ?We look forward to working together to pursue joint strategic initiatives.?
?Daimler is an iconic brand and a financially strong company with a reputation for excellence worldwide,? Aabar Chairman Khadem Al Qubaisi said in a statement. ?We are delighted to have received the opportunity to be making this investment.?
As part of the exchange and to demonstrate a long-term commitment, the two companies will work together on electric vehicle development and Daimler will establish a training centre in Abu Dhabi.
With Aabar Investment?s largest stakeholder being International Petroleum Investment Company (IPIC), it will be interesting to see just how committed Aabar is to developing electric vehicles.