REPORT: Daimler sells 9.1% stake to Abu Dhabi firm for $2.7 billion

[Bill Wood]

Filed under: Daimler, Mercedes-Benz

The global auto industry is enduring its worst crisis in decades, and iconic companies with 100-year histories are being pushed to the brink. Luxury automaker Daimler is no different, with Mercedes-Benz sales down 17% in the past quarter and posting a loss of $1.95 billion in the fourth quarter alone. To help alleviate the a major cash crunch, Daimler has sold off 9.1% of the company to Abu Dhabi firm Aabar Investments PJSC.

Aabar purchased 96.4 million shares at a 5% discount under the stock price of 21.34 euros. Daimler shares were selling for 45 euros a piece before the rug was pulled out from under global luxury car sales. Both companies consider the partnership to be a long-term investment, as Daimler will need all the help it can get weathering brutal automobile sales slump. The two companies will also collaborate on electric vehicle development and Daimler will build a training center in Abu Dhabi. Thanks for the tip, Abdul!

[Source: Bloomberg | Photo: Torsten Silz/Getty]REPORT: Daimler sells 9.1% stake to Abu Dhabi firm for $2.7 billion originally appeared on Autoblog on Mon, 23 Mar 2009 07:58:00 EST. Please see our terms for use of feeds.



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Autoblog
03-23-2009 08:58 AM

[iwrock]

According to those numbers, Daimler as a whole is worth somewhere around 30 billion.