Abu Dhabi reportedly selling its Daimler stake to Deutsche Bank image

Abu Dhabi’s sovereign fund Aabar is exiting its investment in German automaker Daimler AG, the maker of Mercedes-Benz cars, according to a report from a German magazine.

Manager Magazin cited unidentified people from Daimler who said that Abu Dhabi’s sovereign wealth fund Aabar is transferring the rights to the last 3 percent of the shares it holds in Daimler to Deutsche Bank. Aabar is a unit of International Petroleum Investment Company (IPIC).

Neither Deutsche Bank, nor Aabar commented on the transaction. In its annual report published in February, Daimler said that Aabar physically held about 3 percent of Daimler’s shares, had voting rights for about 5 percent and held a total of 9 percent, including shares lent to third parties.
Abu Dhabi’s Aabar became Daimler’s largest investor after buying roughly 9 percent for 1.95 billion euros ($2.5 billion) in March 2009, much of which was promptly loaned out to finance the purchase.

Back in April, two people familiar with the matter told Reuters that Abu Dhabi was preparing to gradually sell its stake in the German automotive company. In June, International Petroleum Investment Company reported a fair value loss on its Daimler holding of $2.25 billion in 2011, while booking a $1.9 billion derivative gain on the stake.