Aabar gets nod to convert to private joint stock firm

UPDATE 1: Share capital for new company set at $1.10bn, with a nominal value AED1/share.
Aabar gets nod to convert to private joint stock firm
Aabars portfolio includes stakes in Italian banking giant UniCredit and Virgin Groups space travel unit Galactic.
By Reuters
Mon 16 Aug 2010 10:47 AM

Abu Dhabi's Aabar Investments, the largest shareholder in German automaker Daimler, said shareholders approved its conversion to a private joint stock company and subsequent delisting.

Share capital for the new company was set at AED4.04bn ($1.10bn), with a nominal value of one dirham per share, Aabar said in a statement on the Abu Dhabi bourse website on Monday.

The sovereign wealth fund posted a second-quarter loss of AED1.38bn ($375.6m) due to a surge in derivatives liabilities, according to Reuters calculations.

The state-owned firm said on Sunday it made a net profit of AED202m for the first half of the year.

The delisting, set to take effect on September 1 according to The National newspaper, would mark Aabar's departure from being one of the most transparent sovereign funds globally, most of whom operate in complete secrecy, back into the shadows. It will also be the first delisting of a local firm from the Abu Dhabi bourse.

Aabar's portfolio includes stakes in Italian banking giant UniCredit and Virgin Group's space travel unit Galactic.

International Petroleum Investment Corporation, or IPIC, wholly owned by the government of Abu Dhabi, is the majority shareholder in Abu Dhabi-listed Aabar. ($1=3.674 UAE Dirhams) (Reuters)

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