The capital increase will be carried out by issuing 96,408,000 new registered no par value shares of Daimler's Authorized Capital, the capital increase by Aabar being approved yesterday by Daimler's Supervisory Board.
"We are delighted to welcome Aabar as a new major shareholder that is supportive of our corporate strategy. We look forward to working together to pursue joint strategic initiatives," Dieter Zetsche, Chairman of the Board of Management of Daimler AG said in a release.
The investment comes in addition to range of initiatives undertaken by Daimler to react to the changing market environment. The investment will allow Daimler to strengthen capital base and gives greater flexibility to invest in automotive technologies.
"Daimler is an iconic brand and a financially strong company with a reputation for excellence worldwide," Khadem Al Qubaisi, Aabar chairman added.
The future cooperation between the investment fund and Daimler will aim at developing electric vehicles and low CO2 emission engines, research into the development of compound materials to be used in vehicle design as well as establishing a training center in Abu Dhabi.
Aabar is an investment company which invests in various sectors including energy, infrastructure, real estate, automotive and financial services companies. Its largest stakeholder is the International Petroleum Investment Company (IPIC), which in turn is wholly owned by the Government of the Emirate of Abu Dhabi.
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