The Abu Dhabi Government is planning to become a major shareholder in Aabar Investments through the purchase of Dh7 billion convertible bonds to be issued by the company shortly, Aabar said yesterday.
In its third statement this week about the imminent bond issuance, Aabar still did not identify the potential buyer but described it as a strategic investor "based in Abu Dhabi and fully owned by the Government of Abu Dhabi".
Market dealers speculated the company could be either the International Petroleum Investment Corporation (Ipic), Taqa or Mubadala Development Company. But some of them ruled out Taqa on the grounds it is not wholly owned by the government.
In a letter sent to Abu Dhabi Securities Exchange (ADX) yesterday, Aabar Investments said it was still negotiating with the potential investor for the bond terms. "At this time, the terms of any such investment have not yet been finalised or agreed by Aabar or the Strategic Investor. As the terms of the investment have not been finalised, Aabar is unable to provide further information on this transaction other than that set out below," Aabar said in a clarification letter in response to an ADX request.
"Nonetheless, Aabar will make prompt disclosure of any and all information pertaining to this investment once details have become finalised… the Strategic Investor is an Abu Dhabi-based corporation that is wholly owned by the Government of the Emirate of Abu Dhabi… it is engaged in international petroleum and energy investments and holds equity stakes in several international energy companies."
It said the company's shareholders would hold an extraordinary meeting on August 3 to decide on the bond issue.