To accommodate the acquisition, Daimler increased its stock by 10% by issuing an additional 96,408,000 shares. Aabar was then allowed to acquire all the new shares in a total investment of almost $2.7 billion, with existing shareholders excluded from the capital increase. The funds will be used to help further develop a new generation of electric vehicles and advanced compound materials for lighter vehicle structures, as well as establish new engineering and training centers in Abu Dhabi.
For those unfamiliar with Aabar, the firm is a financial group headquartered in Abu Dhabi that traditionally invests in the energy, infrastructure, real estate, financial and auto sectors. Its largest stakeholder is the International Petroleum Investment Company (IPIC), which in turn is wholly owned by the UAE government. Incidentally, Aabar is the second major Arab investment group to buy shares in Daimler. The Kuwaiti government, which currently holds a 6.9% stake in the firm, has been buying Daimler shares since 1974.