German Manager Magazin: Mercedes-Benz: Kuwait sovereign wealth fund before partial withdrawal from the car company002393

After almost five decades, the Kuwaiti sovereign wealth fund is partially withdrawing from the Stuttgart carmaker Mercedes Benz. The Kuwait Investment Authority puts 20 million Mercedes-Benz shares on the market overnight and could thus raise almost 1.4 billion euros, as the investment bank Morgan Stanley, which was commissioned with the placement, announced on Tuesday evening.

With 6.84 percent, Kuwait has so far been the third-largest shareholder in Mercedes-Benz and is now shrinking its stake to just under five percent. The automaker said it had been briefed in advance by the Kuwaitis about the sales plans. The state fund, which has been involved with Mercedes since 1974, wants to spread its shares more widely, but remains an important shareholder.

The bank announced that the 20 million shares would probably be sold at EUR 69.27. That is a discount of 3.6 percent to the Xetra closing price of EUR 71.89. The placement was oversubscribed many times over at this price. In late trading, Mercedes-Benz fell 2.7 percent to 69.80 euros.

The two largest shareholders of Mercedes-Benz are its Chinese partners, the carmaker BAIC (9.98 percent) and the entrepreneur Li Shufu (59)

about the Chinese automaker (9.69 percent). In the course of the recent share buyback by Mercedes-Benz, you had agreed with the automobile group to leave your stake unchanged. He recently left the truck manufacturer Daimler Truck, in which Li held 6.3 percent.

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