Higher buyout price for Aabar
Market regulators say buyout price should be an average share price over months.
July 19, 2010 8:53 by Rasha Reslan
Aabar Investments, one of the Gulf’s most active investment funds and a major stakeholder in Daimler, has been advised by the market regulator of the Abu Dhabi exchange that it should offer its shareholders AED1.95 a share to delist from the bourse, 7Days reported Monday.
The Emirates Securities and Commodities Authority said yesterday that shareholders should be given a six-month closing average of the company’s share price. Aabar announced last week that it would buy out its minority shareholders at the stock’s Sunday closing price of AED 1.45, drawing criticism from shareholders that the offer was too low. The news of the higher buyout price caused a near 10 percent increase in share prices, amid criticism that trading of Aabar should have been suspended during talks.