Aabar Investments PJSC on shopping spree to expand portfolio

Aabar Investments PJSC is a global investment company listed on the Abu Dhabi Securities Exchange (ADX), currently looking at available major investment opportunities in upstream and downstream sectors, related not only to energy, with significant long-term growth potential.

In May 2006 Aabar Petroleum possessed 97% of Pearl Energy, paying about AED 1.9 billion for its stake (430,468,749 shares at about 4.42 dhs each). The company’s intentions was to buy the remaining 3% and delist Pearl Energy, what presumably it did.

Reuters reported in January 2008 that Aabar received an offer from state-owned Mubadala Development Co.  to buy 90 percent of its Pearl Energy unit. Aabar directors considered the offer, the company said in a statement.

The sale of Pearl has generated an estimated profit in excess of $100 million. After a sukuk redemption, the company’s balance sheet consisted of a total cash balance of approximately Dh2.2 billion.

Aabar name change from Aabar Energy PJSC to Aabar Investments PJSC was effective about 21 May 2008, after shareholders had approved the change and their resolution had been confirmed by the relevant governmental authorities.

By that time Aabar has exited from the exploration and production business and a  new board was reviewing it’s future strategy.

New Aabar CEO (acting) as of 25 September 2008 became HE Khadem Al Qubaisi, who is also the Aabar chairman as of 17 September 2008.

Following a meeting of the Board of Directors of Abu Dhabi-listed Aabar Investments PJSC (AABAR) which was held Abu Dhabi, Dr. Gerhard Roiss has been appointed as a new Director on the Board of Aabar.

In November 2008 Aabar Investments PJSC  has signed a purchase agreement to acquire two residential land plots in the Al Raha development area where it will develop residential properties of up to 4 residential towers.

A month later, Aabar acuired AIG Private Bank LTD. from it’s parent company American International Group. Under the new ownership, AIG Private Bank will became an independent financial institution, headquartered in Switzerland along with branches and representative offices in Hong Kong, Shanghai, Singapore and Dubai. AIG Private Bank will conduct its business under a new name and will continue to focus on providing wealth management services to high net worth individuals in Switzerland, Western and Eastern Europe, Asia and the Middle East.

AIG Private Bank Ltd. is an independent, globally networked private bank for high net worth individuals and a wholly owned subsidiary of American International Group, Inc. (AIG). AIG Private Bank, founded in Zurich in 1965, offers tailor-made asset management solutions to private clients. The bank has branches and representative offices in Hong Kong, Singapore, Shanghai and Dubai. It also holds a 42.5% stake in bank zweiplus ag, a leading Swiss investment and retirement savings bank.

By the end of December 2008 Aabar acquired approximately 3.3% of the share capital stake in Atlantia S.p.A. (“Atlantia”) for approximately € 250 million.

Atlantia is an Italian holding company which is publicly traded on the Milan Stock Exchange and is a constituent of the S&P/MIB index. Its primary asset is Autostrade per l’Italia, the largest concessionaire on the Italian toll road network.

Aabar Energy was created by a group of local investors more than three years ago. One of its founders is Suhail Faris Al Mazroui, a veteran industry figure, who is known in the oil circles in many countries as he had headed the Abu Dhabi National Oil Company (ADNOC). Other major  investors as of 30th November 2008 are: 8.24%  Mr. Saeed Saif Jabr Al Suwaidi, 7.96%  Al Bateen Investment Co. LLC., 6.31%  Mr. Ahmed Mohamed Al Hameeri,  6.28%  Credit Suisse International, 5.64%   National Bank of Abu Dhabi, 5.59%  JP Morgan Securities LTD.

Aabar net earnings hit an all-time high of Dh663.01 million in the first half of 2008 compared with Dh169.2m in the first half of 2007. The 2008 earnings are nearly triple the record profits of Dh226.6m achieved by Aabar Investments during 2007 and seven times its 2006 profits.

By Gergana Mineva at Editor@DubaiChronicle.com