Ipic begins partial takeover of Aabar - Emirates24|7

Ipic begins partial takeover of Aabar

The International Petroleum Investment Company (Ipic), Abu Dhabi Government's overseas oil investment arm, has bought the first tranche of convertible shares issued by Aabar Investment last year within a partial acquisition deal, a statement said yesterday.

The first part involved Dh1.5 billion in convertible shares issued by Aabar in September last year to give Ipic a majority shareholding in the company.

"Following our announcement on September 24, 2008, Aabar is pleased to announce Ipic has completed its purchase of the first tranche of mandatory convertible bonds issued by Aabar for an aggregate amount of Dh1.5bn," Aabar said in a statement at the Abu Dhabi Securities Exchange.

"The remaining tranches of mandatory convertible bonds totalling Dh5.184bn will be purchased by Ipic at any time prior to the maturity date of November 30."

On September 24, Aabar and Ipic signed an agreement for Ipic's purchase of mandatory convertible bonds for an aggregate amount of Dh6.684bn.

In a statement after the deal, Aabar said the bonds would be convertible into 2,228 million new ordinary shares at a conversion price of Dh3 per share. Upon full conversion, Ipic will hold a majority ownership interest in Aabar.

Ipic said after signing the agreement that it would use its global partners to push into new markets and energy would be its target.

"Ipic and Aabar together are providing stronger financial resources and an opportunity to invest internationally and locally using Ipic strategic partners and relationships. Energy sector will take the priority but not the exclusivity," it said.

Aabar was created by a group of national investors more than four years ago. One of its founders is Suhail Faris Al Mazroui, a veteran oil figure who is known in the oil circles in many countries as he had headed the Abu Dhabi National Oil Company.

 

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