Aabar Investments PJSC
Encyclopedia
Aabar Investments PJS is a private joint stock company registered and incorporated in Abu Dhabi
, UAE. The company is engaged in investing activities in various industries including infrastructure, aviation, real estate, automotive, commodities, energy and financial services. Aabar was delisted from the Abu Dhabi Securities Exchange
(ADX) effective 14 September 2010 and subsequently converted from a public joint stock company (PJSC) to a private joint stock company (PJS).
The company’s parent is the International Petroleum Investment Company (IPIC), which is wholly owned by the Government of Abu Dhabi. As per IPIC’s half-yearly financial report, IPIC’s ownership of Aabar increased from 86.17% on 31 December 2010 to 95.23% on 30 June 2011.
The future cooperation between Aabar and Daimler aims to create social and economic benefits for Abu Dhabi
and the UAE. The partnership will focus on joint initiatives in the following areas:
In May 2011, Aabar raised EUR 1.25 billion ($1.76 billion) of an unsecured exchangeable bond
over Daimler shares that is due in 2016. Aabar had earlier launched a EUR 750 million ($1.06 billion) unsecured exchangeable bond but increased the size to EUR 1.25 billion following demand from investors during the book building
phase. Aabar said its commitment to its investment in Daimler
remained unchanged. Aabar will use the proceeds of the offering for general corporate purposes. Based on the increased issue size, the bonds will represent approximately 20 million Daimler shares, or 1.9% of the current total number of issued and outstanding shares.
In October 2011, Aabar announced that its voting stake in Daimler
fell just below 5% through an increase in the German automaker's share capital
which was triggered by exercising stock options. But, Aabar said it remains fully committed to its position as anchor shareholder and stated that its total shareholding in Daimler still compares to the stake it bought in 2009.
(AIG). AIG Private Bank will conduct its business under the new name Falcon Private Bank. The consideration payable for the entire share capital of AIG Private Bank is equal to CHF 288 million ($253 million). In addition, Aabar will assume certain loans outstanding in the amount of CHF 63 million ($55 million).
Falcon Private Bank is now an independent financial institution, wholly owned by Aabar, headquartered in Switzerland
along with branches and representative offices in Geneva, Hong Kong, Singapore, Shanghai and Dubai. Aabar plans to grow the business with a particular focus on providing wealth management
services to private clients, wealthy families and institutional investors in Switzerland, Asia
and the Middle East
.
, a producer of electric vehicles. This investment allows Daimler and Aabar to leverage their shared interest in the development of low CO2 drive systems. In May 2009, Daimler acquired an equity interest of just under 10% in Tesla which is currently the only automobile producer marketing electric vehicles that are capable of operating over long distances in North America
and Europe
. Daimler and Tesla have already agreed to cooperate on the integration of Tesla’s lithium-ion battery packs and charging electronics into the first 1,000 units of Daimler’s electric smart car. In order to benefit from each other’s know-how, the agreement reached in May will enable the two companies to collaborate even more closely on the development of battery systems, electric drive systems and individual vehicle projects.
announced that they had agreed to enter a strategic partnership which will see Aabar take an equity stake in the world’s first commercial spaceline - Virgin Galactic
. To date, Virgin Galactic had been wholly owned and funded by Sir Richard Branson’s
Virgin Group. Under the deal, Aabar will invest approximately $280 million and take a 31.8% stake in Virgin Galactic’s holding company, valuing the business at about $900 million. Additionally, Aabar has committed $100 million to fund a small satellite
launch capability, subject to the development of a full business plan. It will also gain exclusive regional rights to host Virgin Galactic tourism and scientific research space flights
. Aabar also has plans to build spaceport
facilities in Abu Dhabi
.
In October 2011, Aabar boosted its stake in Virgin Galactic to 37.8% from 31.8%, according to the prospectus for a planned bond
sale by Aabar's parent company, IPIC. Aabar invested an additional $110 million in Virgin Galactic in July 2011, boosting its stake by 6%.
, winner of the 2009 Formula 1 constructors’ and drivers’ championships. Aabar together with Daimler acquired 75.1% of the Brawn GP team (Daimler holding 45.1%, Aabar holding 30%) with the balancing 24.9% stake remaining with the company’s existing owners under Ross Brawn
, the principal. Brawn was renamed Mercedes Grand Prix.
In February 2011, Mercedes
completed their takeover of the rebranded Brawn GP team after its parent company Daimler acquired all remaining shares from team principal Ross Brawn and his management partners. In collaboration with its largest shareholder, Aabar, Daimler purchased the remaining 24.9% of the team. Daimler’s stake has now risen to 60% and Aabar now owns 40% of Mercedes GP.
; a private airline company that offers private jet services to business and leisure travelers in the United States and to various other destinations. Aabar and XOJET intend to create a UAE based joint venture
company that will provide first class private aviation services to various destinations within the MENA
region.
development, management and investment company. Aabar Properties is currently focused on supporting Abu Dhabi’s Vision 2030 by developing an extensive range of properties predominantly located in Abu Dhabi
. Current projects include:
The company also offers additional property-related services for its clients, including property sales & marketing, leasing & property management and facilities management.
worth $2.48 billion, becoming the Italian bank’s second biggest shareholder. The investment is in line with the company's strategy to invest in financial services. It first invested in UniCredit, the biggest lender in Central and Eastern Europe, in the bank's 2008 capital increase through convertible bonds.
as a cornerstone investor with an intention to invest an additional $150 million in the Global Offer. Glencore is one of the world's leading integrated producers and marketers of commodities. The investment made Aabar the largest cornerstone investor in the IPO and the largest new shareholder of Glencore post its IPO giving the investment company a 1.4% stake. The two firms intend to explore areas of cooperation between them.
(ADCB) and Aabar announced the execution of a binding agreement for the sale of ADCB’s 24.9% stake in RHB Capital Berhad (RHB) to Aabar at a per share price of MYR 10.80. Upon completion of the transaction, based on 31 March 2011 numbers, ADCB’s Tier 1 ratio increases by approximately 2.04% from 12.39% to 14.43% and total Capital Adequacy Ratio
increases by approximately 4.08% from 17.03% to 21.11%. The purchase of this stake in RHB adds a core asset to Aabar’s financial services investments portfolio.
- Chairman
Mohamed Badawy Al-Husseiny - CEO and Board Member
Murtadha Al Hashmi - Board Member
Mohamed Hamad Al Mehairi - Board Member
Mohamed Ali Al Fahim - Board Member
Alex Iapichino - General Counsel
Anubhav Vaish - Manager, Investments
Pierre Gussing - Manager, Business Development
Ibrahim Eskiocak - Chief Executive Officer, Aabar Properties LLC
Abu Dhabi
Abu Dhabi , literally Father of Gazelle, is the capital and the second largest city of the United Arab Emirates in terms of population and the largest of the seven member emirates of the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western...
, UAE. The company is engaged in investing activities in various industries including infrastructure, aviation, real estate, automotive, commodities, energy and financial services. Aabar was delisted from the Abu Dhabi Securities Exchange
Abu Dhabi Securities Exchange
Abu Dhabi Securities Exchange [ADSM] is a stock exchange in Abu Dhabi, United Arab Emirates . It was established on 15 November 2000 to trade shares of UAE companies. There are trading locations in Abu Dhabi, Al Ain, Fujeirah, Sharjah, and Ras Al Khaimah...
(ADX) effective 14 September 2010 and subsequently converted from a public joint stock company (PJSC) to a private joint stock company (PJS).
The company’s parent is the International Petroleum Investment Company (IPIC), which is wholly owned by the Government of Abu Dhabi. As per IPIC’s half-yearly financial report, IPIC’s ownership of Aabar increased from 86.17% on 31 December 2010 to 95.23% on 30 June 2011.
Daimler AG
In March 2009, Daimler AG announced the sale of EUR 1.95 billion ($2.7 billion) of shares to Aabar. The investment company will buy 96.4 million new Daimler shares for EUR 20.27 apiece. After acquiring all new shares, Aabar will hold approximately 9.1% of the new share capital.The future cooperation between Aabar and Daimler aims to create social and economic benefits for Abu Dhabi
Abu Dhabi
Abu Dhabi , literally Father of Gazelle, is the capital and the second largest city of the United Arab Emirates in terms of population and the largest of the seven member emirates of the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western...
and the UAE. The partnership 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 center in Abu DhabiAbu DhabiAbu Dhabi , literally Father of Gazelle, is the capital and the second largest city of the United Arab Emirates in terms of population and the largest of the seven member emirates of the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western...
to educate young talent for positions in the automotive industry
In May 2011, Aabar raised EUR 1.25 billion ($1.76 billion) of an unsecured exchangeable bond
Exchangeable bond
Exchangeable bond is a type of hybrid security consisting of a straight bond and an embedded option to exchange the bond for the stock of a company other than the issuer at some future date and under prescribed conditions. An exchangeable bond is different from a convertible bond...
over Daimler shares that is due in 2016. Aabar had earlier launched a EUR 750 million ($1.06 billion) unsecured exchangeable bond but increased the size to EUR 1.25 billion following demand from investors during the book building
Book building
Book building refers to the process of generating, capturing, and recording investor demand for shares during an IPO in order to support efficient price discovery. Usually, the issuer appoints a major investment bank to act as a major securities underwriter or bookrunner...
phase. Aabar said its commitment to its investment in Daimler
Daimler
- Daimler with reference to motor vehicles :refers to:* Gottlieb Daimler , German automobile inventor- Business co-founded by Gottlieb Daimler :...
remained unchanged. Aabar will use the proceeds of the offering for general corporate purposes. Based on the increased issue size, the bonds will represent approximately 20 million Daimler shares, or 1.9% of the current total number of issued and outstanding shares.
In October 2011, Aabar announced that its voting stake in Daimler
Daimler
- Daimler with reference to motor vehicles :refers to:* Gottlieb Daimler , German automobile inventor- Business co-founded by Gottlieb Daimler :...
fell just below 5% through an increase in the German automaker's share capital
Share capital
Share capital or issued capital or capital stock refers to the portion of a company's equity that has been obtained by trading stock to a shareholder for cash or an equivalent item of capital value...
which was triggered by exercising stock options. But, Aabar said it remains fully committed to its position as anchor shareholder and stated that its total shareholding in Daimler still compares to the stake it bought in 2009.
Falcon Private Bank
In April 2009, Aabar announced the completion of its acquisition of AIG Private Bank from its parent American International GroupAmerican International Group
American International Group, Inc. or AIG is an American multinational insurance corporation. Its corporate headquarters is located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London, continental Europe operations are based in...
(AIG). AIG Private Bank will conduct its business under the new name Falcon Private Bank. The consideration payable for the entire share capital of AIG Private Bank is equal to CHF 288 million ($253 million). In addition, Aabar will assume certain loans outstanding in the amount of CHF 63 million ($55 million).
Falcon Private Bank is now an independent financial institution, wholly owned by Aabar, headquartered in Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
along with branches and representative offices in Geneva, Hong Kong, Singapore, Shanghai and Dubai. Aabar plans to grow the business with a particular focus on providing wealth management
Wealth management
Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services...
services to private clients, wealthy families and institutional investors in Switzerland, Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
and the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
.
Tesla Motors
In July 2009, Aabar purchased 40% of the equity interest of Daimler AG in Tesla Motors Inc.Tesla Motors
Tesla Motors, Inc. is a Silicon Valley-based company that designs, manufactures and sells electric cars and electric vehicle powertrain components. It was the only automaker building and selling a zero-emission sports car, the Tesla Roadster, in serial production...
, a producer of electric vehicles. This investment allows Daimler and Aabar to leverage their shared interest in the development of low CO2 drive systems. In May 2009, Daimler acquired an equity interest of just under 10% in Tesla which is currently the only automobile producer marketing electric vehicles that are capable of operating over long distances in North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
and Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
. Daimler and Tesla have already agreed to cooperate on the integration of Tesla’s lithium-ion battery packs and charging electronics into the first 1,000 units of Daimler’s electric smart car. In order to benefit from each other’s know-how, the agreement reached in May will enable the two companies to collaborate even more closely on the development of battery systems, electric drive systems and individual vehicle projects.
Virgin Galactic
In July 2009, Aabar and Virgin GroupVirgin Group
Virgin Group Limited is a British branded venture capital conglomerate organisation founded by business tycoon Richard Branson. The core business areas are travel, entertainment and lifestyle. Virgin Group's date of incorporation is listed as 1989 by Companies House, who class it as a holding...
announced that they had agreed to enter a strategic partnership which will see Aabar take an equity stake in the world’s first commercial spaceline - Virgin Galactic
Virgin Galactic
Virgin Galactic is a company within Richard Branson's Virgin Group which plans to provide sub-orbital spaceflights to the paying public, along with suborbital space science missions and orbital launches of small satellites...
. To date, Virgin Galactic had been wholly owned and funded by Sir Richard Branson’s
Richard Branson
Sir Richard Charles Nicholas Branson is an English business magnate, best known for his Virgin Group of more than 400 companies....
Virgin Group. Under the deal, Aabar will invest approximately $280 million and take a 31.8% stake in Virgin Galactic’s holding company, valuing the business at about $900 million. Additionally, Aabar has committed $100 million to fund a small satellite
Satellite
In the context of spaceflight, a satellite is an object which has been placed into orbit by human endeavour. Such objects are sometimes called artificial satellites to distinguish them from natural satellites such as the Moon....
launch capability, subject to the development of a full business plan. It will also gain exclusive regional rights to host Virgin Galactic tourism and scientific research space flights
Spaceflight
Spaceflight is the act of travelling into or through outer space. Spaceflight can occur with spacecraft which may, or may not, have humans on board. Examples of human spaceflight include the Russian Soyuz program, the U.S. Space shuttle program, as well as the ongoing International Space Station...
. Aabar also has plans to build spaceport
Spaceport
A spaceport or cosmodrome is a site for launching spacecraft, by analogy with seaport for ships or airport for aircraft. The word spaceport, and even more so cosmodrome, has traditionally been used for sites capable of launching spacecraft into orbit around Earth or on interplanetary trajectories...
facilities in Abu Dhabi
Abu Dhabi
Abu Dhabi , literally Father of Gazelle, is the capital and the second largest city of the United Arab Emirates in terms of population and the largest of the seven member emirates of the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western...
.
In October 2011, Aabar boosted its stake in Virgin Galactic to 37.8% from 31.8%, according to the prospectus for a planned bond
Bond
Bond, bonds, bonded, and bonding may refer to:* Peace-bonding, something which makes a weapon unusable as a weapon- Fiduciary :* Bond , in finance, a type of debt security...
sale by Aabar's parent company, IPIC. Aabar invested an additional $110 million in Virgin Galactic in July 2011, boosting its stake by 6%.
Mercedes-Benz Grand Prix
In November 2009, Aabar and Daimler AG acquired a majority shareholding in Brawn GPBrawn GP
Brawn GP Formula One Team, the trading name of Brawn GP Limited, was a Formula One motor racing team and constructor, created by a management buyout of Honda Racing F1 Team. It only competed in the 2009 Formula One World Championship, with drivers Jenson Button and Rubens Barrichello. The team...
, winner of the 2009 Formula 1 constructors’ and drivers’ championships. Aabar together with Daimler acquired 75.1% of the Brawn GP team (Daimler holding 45.1%, Aabar holding 30%) with the balancing 24.9% stake remaining with the company’s existing owners under Ross Brawn
Ross Brawn
Ross James Brawn OBE is an English motorsport engineer and Formula One team principal. He has worked for a number of Formula One teams, serving as the technical director of the championship-winning Benetton and Ferrari teams. He took a sabbatical from the sport in 2007 but returned to F1 for the...
, the principal. Brawn was renamed Mercedes Grand Prix.
In February 2011, Mercedes
Mercedes
Mercedes is a girl's name of Spanish origin, referring to a title for the Virgin Mary, "Our Lady of Mercy". The word may also refer to:Automobile-related...
completed their takeover of the rebranded Brawn GP team after its parent company Daimler acquired all remaining shares from team principal Ross Brawn and his management partners. In collaboration with its largest shareholder, Aabar, Daimler purchased the remaining 24.9% of the team. Daimler’s stake has now risen to 60% and Aabar now owns 40% of Mercedes GP.
XOJET
In February 2010, Aabar agreed to invest $20 million for shares in US aviation company XOJET Inc.XOJET
XOJET, is a full-solution private aviation company based in Brisbane, California, that offers on demand private jet charter as well as guaranteed availability private jet services.-History:...
; a private airline company that offers private jet services to business and leisure travelers in the United States and to various other destinations. Aabar and XOJET intend to create a UAE based joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
company that will provide first class private aviation services to various destinations within the MENA
MENA
The term MENA, for "Middle East and North Africa", is an acronym often used in academic, military planning and business writing.The term covers an extensive region, extending from Morocco to Iran, including the majority of both the Middle Eastern and Maghreb countries...
region.
Aabar Properties
Aabar Properties LLC, a subsidiary of Aabar Investments, was launched in April 2010 as a real estateReal estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
development, management and investment company. Aabar Properties is currently focused on supporting Abu Dhabi’s Vision 2030 by developing an extensive range of properties predominantly located in Abu Dhabi
Abu Dhabi
Abu Dhabi , literally Father of Gazelle, is the capital and the second largest city of the United Arab Emirates in terms of population and the largest of the seven member emirates of the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western...
. Current projects include:
- Najmat
- B1 Tower
- Saraya
- Al Raha Beach
- Shams C13
- Maysan
- Shams C12
- IPIC Square
The company also offers additional property-related services for its clients, including property sales & marketing, leasing & property management and facilities management.
UniCredit
In June 2010, Aabar bought a 4.99% stake in UniCredit SpAUniCredit
UniCredit SpA is an Italy-based, pan-European banking organization, with aprox 40 million customers and operations in 22 countries.- Geography :...
worth $2.48 billion, becoming the Italian bank’s second biggest shareholder. The investment is in line with the company's strategy to invest in financial services. It first invested in UniCredit, the biggest lender in Central and Eastern Europe, in the bank's 2008 capital increase through convertible bonds.
Glencore
In May 2011, Aabar confirmed an investment of $850 million in Glencore International plcGlencore
Glencore International plc is a multinational mining and commodities trading company headquartered in Baar, Switzerland and with its registered office in Saint Helier, Jersey...
as a cornerstone investor with an intention to invest an additional $150 million in the Global Offer. Glencore is one of the world's leading integrated producers and marketers of commodities. The investment made Aabar the largest cornerstone investor in the IPO and the largest new shareholder of Glencore post its IPO giving the investment company a 1.4% stake. The two firms intend to explore areas of cooperation between them.
RHB Capital
In June 2011, Abu Dhabi Commercial BankAbu Dhabi Commercial Bank
Abu Dhabi Commercial Bank , commonly called ADCB, is a bank in the United Arab Emirates.Abu Dhabi Commercial Bank was formed in 1985 as a public shareholding company with limited liability, upon merger of Emirates Commercial Bank and Federal Commercial Bank with Khaleej Commercial Bank, which was...
(ADCB) and Aabar announced the execution of a binding agreement for the sale of ADCB’s 24.9% stake in RHB Capital Berhad (RHB) to Aabar at a per share price of MYR 10.80. Upon completion of the transaction, based on 31 March 2011 numbers, ADCB’s Tier 1 ratio increases by approximately 2.04% from 12.39% to 14.43% and total Capital Adequacy Ratio
Capital adequacy ratio
Capital adequacy ratio , also called Capital to Risk Assets Ratio , is a ratio of a bank's capital to its risk...
increases by approximately 4.08% from 17.03% to 21.11%. The purchase of this stake in RHB adds a core asset to Aabar’s financial services investments portfolio.
Board of Directors
Khadem Al-QubaisiKhadem al-Qubaisi
Khadem al-Qubaisi is an Emirati businessman and a board member and Managing Director of the International Petroleum Investment Company .-Early life:...
- Chairman
Mohamed Badawy Al-Husseiny - CEO and Board Member
Murtadha Al Hashmi - Board Member
Mohamed Hamad Al Mehairi - Board Member
Mohamed Ali Al Fahim - Board Member
Senior Management
Brandt Mowry - Chief Financial Officer; Chief Investment OfficerAlex Iapichino - General Counsel
Anubhav Vaish - Manager, Investments
Pierre Gussing - Manager, Business Development
Ibrahim Eskiocak - Chief Executive Officer, Aabar Properties LLC