Daimler increases capital to welcome new investor

Aabar was acquiring all the new shares in a total investment of 1.95 billion euros ($2.67 billion), with existing shareholders excluded from the capital increase, DAIMLER said.

"We are delighted to welcome Aabar as a new major shareholder that is supportive of our corporate strategy," Daimler Chief Executive Dieter Zetsche said in a statement.

"We look forward to working together to pursue joint strategic initiatives," he added.

After acquiring all new shares, Aabar will hold about 9.1 percent of the new share capital, Daimler said. The issue price of the shares is 20.27 euros per share.

"The capital increase was approved by Daimler's supervisory board today," the carmaker added.

The capital increase will be carried out by issuing 96,408,000 new registered no par value shares from Daimler's Authorised Capital approved by the Annual Shareholders' Meeting of April 9, 2008 in exchange for cash contributions.

"Daimler is an iconic brand and a financially strong company with a reputation for excellence worldwide," Aabar Chairman Khadem Al Qubaisi said in a statement. "We are delighted to have received the opportunity to be making this investment."

Aabar's largest stakeholder is International Petroleum Investment Company (IPIC), which in turn is wholly owned by the Government of the Emirate of Abu Dhabi.

(Reporting by Paul Carrel; editing by Richard Chang)