Daimler is increasing its share capital by 10 per cent to allow Abu Dhabi's Aabar Investments PJSC to become a major investor in the company.
- shares

Aabar's total investment will be 1.95 billion euros (AU$3.85 billion), or about 9.1 per cent of the new share capital. The issue price of the shares is 20.27 euros per share.

"We are delighted to welcome Aabar as a new major shareholder that is supportive of our corporate strategy," Daimler CEO Dieter Zetsche said. "We look forward to working together to pursue joint strategic initiatives."

The capital increase will be carried out by issuing 96,408,000 new registered no par value shares from Daimler's Authorised Capital 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.