IPIC bid to buy out stakes in Aabar
By Adam Schreck |
July 13, 2010, Tuesday
|
Print Edition
Print Edition
AN Abu Dhabi sovereign wealth fund that owns the bulk of Aabar Investments moved yesterday to take control of the fast-growing firm with big stakes in the maker of Mercedes-Benz and Italy's largest bank.
The state-run International Petroleum Investment Co offered to buy out smaller shareholders for 1.45 dirhams (39 US cents) per share, according to a regulatory filing on Abu Dhabi's stock exchange.
That bid is equal to the value of the shares at the close of business on Sunday. But it is well below their going rate before Aabar shocked investors last month by announcing it was considering taking itself private.
Aabar said the offer is good until August 1. It is unclear what would happen if shareholders reject the deal, given that IPIC already has majority control of Aabar.
Officials could not be reached for further comment.
Aabar is unusual among the oil-rich Gulf's often secretive investment funds in that it sells some shares to the public. That has also made it one of the region's most transparent pools of state-controlled cash, because the stock listing means it has to release financial information like yesterday's takeover offer.
Analysts say going private would give Aabar more room to maneuver. It would no longer have to answer to minority shareholders and could disclose less financial information than it does now.
IPIC already controls more than 70 percent of Aabar. It in turn is owned by the government of Abu Dhabi, the capital of the United Arab Emirates federation and holder of most of the country's oil reserves.
Aabar has quickly grown into one of the Gulf's most active investment vehicles. It last month paid US$2.2 billion for nearly 5 percent of UniCredit, Italy's largest bank.
The state-run International Petroleum Investment Co offered to buy out smaller shareholders for 1.45 dirhams (39 US cents) per share, according to a regulatory filing on Abu Dhabi's stock exchange.
That bid is equal to the value of the shares at the close of business on Sunday. But it is well below their going rate before Aabar shocked investors last month by announcing it was considering taking itself private.
Aabar said the offer is good until August 1. It is unclear what would happen if shareholders reject the deal, given that IPIC already has majority control of Aabar.
Officials could not be reached for further comment.
Aabar is unusual among the oil-rich Gulf's often secretive investment funds in that it sells some shares to the public. That has also made it one of the region's most transparent pools of state-controlled cash, because the stock listing means it has to release financial information like yesterday's takeover offer.
Analysts say going private would give Aabar more room to maneuver. It would no longer have to answer to minority shareholders and could disclose less financial information than it does now.
IPIC already controls more than 70 percent of Aabar. It in turn is owned by the government of Abu Dhabi, the capital of the United Arab Emirates federation and holder of most of the country's oil reserves.
Aabar has quickly grown into one of the Gulf's most active investment vehicles. It last month paid US$2.2 billion for nearly 5 percent of UniCredit, Italy's largest bank.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
