Kuwait’s sovereign wealth fund reduces its stake in Mercedes-Benz by almost 2%.

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The sovereign wealth fund of the Gulf State Kuwait Investment Authority (KIA) sold yesterday 20 million shares of Mercedes-Benz. Following this operation, the German brand saw its shares fall.

 

Sovereign wealth fund Kuwait Investment Authority (KIA), a historic investor in Mercedes-Benz since 1974, has sold 20 million shares in an accelerated offering, reducing its stake in the German company by 1.87%.

 

Kuwait Investment Authority now owns 4.97% of Mercedes’ share capital, making it the third largest shareholder, with about 53 million shares. According to Bloomberg, this sale of shares is an “effort to diversify” the asset portfolio of the Kuwaiti sovereign wealth fund.

 

The sale of the sovereign wealth fund’s shares was concluded for about 69.27 euros per share, which represents an amount of about 1,385 million euros, according to Banco Sabadell.

 

KIA’s decision to reduce its stake in Mercedes Benz comes a month and a half after the company announced its results for last year, with a net profit of 14,809 million euros, 34% more than 2021. This decision could therefore be rather related to the uncertain growth prospects of the automotive sector and the evolution of the global economic situation.

 

Mercedes Benz share price down

 

This news was not well received by investors, who saw it as “negative news”. In fact, according to Banco Sabadell, “KIA’s 6.84% stake has been maintained since 2007 (when Daimler and Chrysler broke off their relationship). Thus, this divestment is surprising at a time when the company is converting its business to a more premium model, which in essence should allow them a strong rerating of the shares.”

 

After this operation, the share of Mercedes Benz on the Frankfurt Stock Exchange fell by 2.36% on Wednesday, quoting around 70.5 euros around noon.

 

In front of KIA, the main shareholders of Mercedes Benz remain the Chinese group Beijing Automotive (BAIC), which holds 9.98% of the German consortium, followed by the Chinese automotive giant Geely (9.68%).

 

Over the past three years, the share price of Mercedes-Benz has almost quadrupled.

 

Read also >Mercedes-Benz: 34% increase in net profit by 2022

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The sovereign wealth fund of the Gulf State Kuwait Investment Authority (KIA) sold yesterday 20 million shares of Mercedes-Benz. Following this operation, the German brand saw its shares fall.

 

Sovereign wealth fund Kuwait Investment Authority (KIA), a historic investor in Mercedes-Benz since 1974, has sold 20 million shares in an accelerated offering, reducing its stake in the German company by 1.87%.

 

Kuwait Investment Authority now owns 4.97% of Mercedes’ share capital, making it the third largest shareholder, with about 53 million shares. According to Bloomberg, this sale of shares is an “effort to diversify” the asset portfolio of the Kuwaiti sovereign wealth fund.

 

The sale of the sovereign wealth fund’s shares was concluded for about 69.27 euros per share, which represents an amount of about 1,385 million euros, according to Banco Sabadell.

 

KIA’s decision to reduce its stake in Mercedes Benz comes a month and a half after the company announced its results for last year, with a net profit of 14,809 million euros, 34% more than 2021. This decision could therefore be rather related to the uncertain growth prospects of the automotive sector and the evolution of the global economic situation.

 

Mercedes Benz share price down

 

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The sovereign wealth fund of the Gulf State Kuwait Investment Authority (KIA) sold yesterday 20 million shares of Mercedes-Benz. Following this operation, the German brand saw its shares fall.

 

Sovereign wealth fund Kuwait Investment Authority (KIA), a historic investor in Mercedes-Benz since 1974, has sold 20 million shares in an accelerated offering, reducing its stake in the German company by 1.87%.

 

Kuwait Investment Authority now owns 4.97% of Mercedes’ share capital, making it the third largest shareholder, with about 53 million shares. According to Bloomberg, this sale of shares is an “effort to diversify” the asset portfolio of the Kuwaiti sovereign wealth fund.

 

The sale of the sovereign wealth fund’s shares was concluded for about 69.27 euros per share, which represents an amount of about 1,385 million euros, according to Banco Sabadell.

 

KIA’s decision to reduce its stake in Mercedes Benz comes a month and a half after the company announced its results for last year, with a net profit of 14,809 million euros, 34% more than 2021. This decision could therefore be rather related to the uncertain growth prospects of the automotive sector and the evolution of the global economic situation.

 

Mercedes Benz share price down

 

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Thanks to its extensive knowledge of these sectors, the Luxus + editorial team deciphers for its readers the main economic and technological stakes in fashion, watchmaking, jewelry, gastronomy, perfumes and cosmetics, hotels, and prestigious real estate.

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