National Press Release


Save Money With Free Car Insurance Quote
FREE car insurance quote
Enter Zip Code:

BUYING USED AUTO PARTS: THE DO'S AND DON'TS

BUYING USED AUTO PARTS: THE DO'S AND DON'TS This complete guide is filled with valuable tips on how to buy used parts, where to look for quality salvage parts, how best to determine a fair price, ways to validate salvage yards, and how not to get ripped off by fraudulent wrecking yards. A must have for anybody buying parts.
Get your copy now!

National Press Release

Abu Dhabi's Aabar Investments To Become a Major Daimler Shareholder

Published 2009-03-22 13:45
By Daimler AG

Daimler increases share capital by 10% with exclusion of subscription

rights of existing shareholders

After acquiring all new shares, Aabar will hold 9.1% of the new share

capital

Issue price of euro 20.27 per share close to the current market price

Total investment of euro 1.95 billion further strengthens Daimler's

sound capital base and offers additional flexibility to invest in new

automotive technologies

Platform for joint strategic initiatives established

Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG:

"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."

HE Khadem Al Qubaisi, Chairman of Aabar: "Daimler is an iconic brand

and a financially strong company with a reputation for excellence

worldwide. We are delighted to have received the opportunity to be

making this investment."

STUTTGART, Germany, March 22 /PRNewswire-FirstCall/ -- Daimler AG (NYSE: DAI) welcomes Aabar Investments PJSC (Aabar) of Abu Dhabi, as a major investor. Daimler increases the share capital by approx. 10% with exclusion of subscription rights of existing shareholders. After acquiring all new shares, Aabar will hold approx. 9.1% of the new share capital. The capital increase was approved by Daimler's Supervisory Board today.

Aabar is an investment company headquartered in Abu Dhabi and is listed on the Abu Dhabi Securities Exchange. It directly 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.

The capital increase will be carried out by issuing 96,408,000 new registered no par value shares of Daimler's Authorised Capital approved by the Annual Shareholders´ Meeting of April 9, 2008 in exchange for cash contributions. Existing shareholders' rights to subscribe to these new shares are excluded. The issue price of the shares is euro 20.27 per share, resulting in an equity contribution for Daimler of euro 1.95 billion.

Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars: "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."

Khadem Al Qubaisi, Chairman Aabar: "Daimler is an iconic brand and a financially strong company with a reputation for excellence worldwide. We are delighted to have received the opportunity to make this investment and are excited by the commercial potential of our partnership. We believe that our future cooperation will be beneficial for Aabar and create social and economic benefits for Abu Dhabi and the United Arab Emirates. We look forward to working with Daimler to fully realize these opportunities."

The future cooperation will focus on joint initiatives in the following areas:

    --  Electric vehicles with a particular focus on projects aiming at the
        reduction of CO2-emissions

    --  Development and/or production of innovative compound materials to be
        used in automotive manufacturing

    --  Social projects such as the establishment of a training centre in Abu
        Dhabi to educate young talent for positions in the automotive industry

The cash inflow from the capital increase of euro 1.95 billion will further improve Daimler's sound financial position. At the end of 2008, the equity ratio of Daimler's industrial business was 42.7% and the equity ratio of the entire Daimler Group was 24.3%.

The investment complements a broad range of initiatives already undertaken by Daimler to react to the changing market environment, further strengthens its solid capital base and gives even greater flexibility to invest in innovative automotive technologies during a period of economic uncertainty and macroeconomic instability.

With Abu Dhabi and Kuwait, Daimler will have two major shareholders in the future. Kuwait has held an equity interest since 1974. Following the capital increase, the equity interest held by Kuwait will amount to 6.9%.

Further information from Daimler is available at www.media.daimler.com

Further information about Aabar can be found at www.aabar.com

This document contains forward-looking statements that reflect our current views about future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "plan," "project," "should" and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including a lack of improvement or a further deterioration of global economic conditions; a continuation or worsening of the turmoil in the credit and financial markets, which could result in ongoing high borrowing costs or limit our funding flexibility; changes in currency exchange rates and interest rates; the introduction of competing, fuel efficient products and the possible lack of acceptance of our products or services which may limit our ability to adequately utilize our production capacities or raise prices; price increases in fuel, raw materials, and precious metals; disruption of production due to shortages of materials, labor strikes, or supplier insolvencies; a further decline in resale prices of used vehicles; the effective implementation of cost reduction and efficiency optimization programs at all of our segments, including the repositioning of our truck activities in the NAFTA region; the business outlook of Chrysler, in which we hold an equity interest and some of whose obligations we have guaranteed; the business outlook of companies in which we hold an equity interest, most notably EADS; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety, the resolution of pending governmental investigations and the outcome of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading "Risk Report" in Daimler's most recent Annual Report and under the headings "Risk Factors" and "Legal Proceedings" in Daimler's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. If any of these risks and uncertainties materialize, or if the assumptions underlying any of our forward-looking statements prove incorrect, then our actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made.

About Daimler

Daimler AG, Stuttgart, with its businesses Mercedes-Benz Cars, Daimler Trucks, Daimler Financial Services, Mercedes-Benz Vans and Daimler Buses, is a globally leading producer of premium passenger cars and the largest manufacturer of heavy- and medium-duty trucks in the world. The Daimler Financial Services division has a broad offering of financial services, including vehicle financing, leasing, insurance and fleet management. Daimler sells its products in nearly all the countries of the world and has production facilities on five continents. The company's founders, Gottlieb Daimler and Carl Benz, continued to make automotive history following their invention of the automobile in 1886. As an automotive pioneer, Daimler and its employees willingly accept an obligation to act responsibly towards society and the environment and to shape the future of safe and sustainable mobility with groundbreaking technologies and high-quality products. The current brand portfolio includes the world's most valuable automobile brand, Mercedes-Benz, as well as smart, AMG, Maybach, Freightliner, Sterling, Western Star, Mitsubishi Fuso, Setra, Orion and Thomas Built Buses. The company is listed on the stock exchanges in Frankfurt, New York and Stuttgart (stock exchange abbreviation DAI). In 2008, the Group sold 2.1 million vehicles and employed a workforce of over 270,000 people; revenue totaled euro 95.9 billion and EBIT amounted to euro 2.7 billion. Daimler is an automotive Group with a commitment to excellence, and aims to achieve sustainable growth and industry-leading profitability.

About Aabar

Aabar is an investment company headquartered in Abu Dhabi and is listed on the Abu Dhabi Securities Exchange. It directly 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.

About IPIC

International Petroleum Investment Company ("IPIC") is wholly owned by the Government Emirate of Abu Dhabi. It was established in 1984 with a mandate to invest in the hydrocarbons and related sectors. IPIC's investment portfolio is currently estimated to be worth more than US$14 billion, with stakes in many international companies.

SOURCE Daimler AG



Disclaimer: The information on this page is provided by PR Newswire. All rights reserved. Reproduction or redistribution of this content without prior written consent from PR Newswire is strictly prohibited. Automotix is not responsible for this content.