Dubai, UAE: Mid East private investment firm, Dubai International Capital Llc, (DIC) said Thursday, July 5, that it had bought 3.1% of the European Aeronautic Defence and Space Co., (EADS), as part of its investment activity for its $2 billion Global Strategic Equities Fund.
DIC, which is controlled by Dubai ruler, Sheikh Mohammed bin Rashid al-Maktoum, didn't disclose the transaction terms in a statement today. According to Bloomberg, the stake was worth 614 million euros ($838 million) at yesterday's closing price and makes Dubai the fifth-largest EADS shareholder.
DIC also said that it wouldn't take an active role in the management of the Airbus parent.
It also did not reveal the seller or sellers of these shares.
"EADS has been on our short list from the outset," Dubai International Capital, CEO Sameer Al Ansari, said in a statement.
Last month, the governments of Dubai and Qatar announced a $1 billion fund aimed at the world's biggest listed companies.
The German and French governments effectively control the EADS Group. German chancellor, Angela Merkel, is set to meet with her French counterpart, Nicolas Sarkozy, on July 16 to discuss the company's future.
The French state, together with conglomerate Lagardère SCA, holds 22.5% of the company while Germany is represented by a 22.5% investment from DaimlerChrysler AG.
DIC has been involved in a series of profitable transactions this year, having earlier sold its Tussauds Group to Blackstone Group LP for £1.03 billion ($2.08 billion) in cash and a 20% stake in Blackstone's Merlin Entertainments Group Ltd. leisure unit. It had bought the wax museum operator in 2005 for £800 million.
In May it also finalized sale of a 2.2% DaimlerChrysler stake at around €70, which it had earlier acquired in 2005 at €35 per share.