Compelo Banking is using cookies

We use them to give you the best experience. If you continue using our website, we'll assume that you are happy to receive all cookies on this website.

ContinueLearn More

Aabar Luxembourg Acquires 4.99% Stake In UniCredit

Aabar Luxembourg, a wholly owned subsidiary of Abu Dhabi-based Aabar Investments, has acquired a 4.99% stake in Italian bank UniCredit for EUR1.84bn.

The investment makes Aabar the second biggest shareholder in UniCredit after Mediobanca, followed by Fondazione Cassa di Risparmio Verona which holds 4.98% stake.

In March 2009, Aabar invested EUR49m in UniCredit’s hybrid equity-linked securities.

Aabar, along with other foreign investors Libyan Central Bank, Allianz and BlackRock, now holds almost 16% of UniCredit.

According to Bloomberg, Aabar is also planning to delist from the Abu Dhabi exchange to convert the company into a private joint-stock company and cancel the stock listing on the bourse.

Dieter Rampl, chairman of UniCredit, said: “UniCredit warmly welcomes the investment made by Aabar, which enlarges the stable shareholder base of the Group. We see it as a signal of trust in our company and its strategy by an important international institutional investor.”

Armen Papazian, a financial economist who is chief executive of Keipr, a consulting firm specializing in business analytics and intelligence, said: “Unicredit is a very interesting purchase from a number of different perspectives. Given the oil and manufacturing interests of Aabar and its parent, this acquisition indicates a healthy diversification strategy. Moreover, it is actually a healthy financial choice in its own right.

“This investment is well chosen in terms of target and timing. A year earlier this could have been a speculative choice. Today, the results confirm a steady and healthy comeback with an upward trend in the share price mirroring good fundamentals,” reported Gulf News.