Monthly M&A Insider - Mergermarket

Deal of the month
Target: Daimler AG Announced: 22 March 2009
Bidders: Aabar Investment PJSC Deal value: €1,954m
Seller: - Deal nature: Recommended; Cross border
• Aabar Investment PJSC, the listed UAE based oil and
gas exploration and production company, has acquired
a 9.1% stake in Daimler AG, the listed German vehicle
manufacturer, through a new share capital increase, for a
total consideration of €1.95bn
• The newly issued shares will increase the Daimler share
capital by 10%. Daimler generated turnover of €95.87bn
for the year ended 31 December 2009.
• The offer price of €20.27 represents a discount of 5%
from Daimler’s closing price of €21.34 as of 20 March
2009, the last trading day prior to the announcement, and
a premium of 5.13% over the company’s closing price
of €19.28 as of 23 February 2009, one month before the
announcement.
Germany
• Under the terms of the agreement, Aabar has agreed
to acquire 96,408,000 new shares for a consideration
to be paid in cash. Prior to the acquisition, The Kuwaiti
government owned a stake of 7.6% which will fall to
6.9% post transaction while Aabar will own a 9.1% stake
in Daimler.
• The acquisition will help Daimler strengthen its capital
base, creating opportunities for expansion in new
automotive technologies during a period of economic
uncertainty and macroeconomic instability. Furthermore,
the combination will focus on electric vehicles projects
with a focus on reduction of CO2-emissions.
Exit multiples – Y/E 31/12/2008 Premium analysis
Multiples Value (€m) Offer price per share (€) 20.27
Revenue 0.7x 95,873 1 day before -5.01%
EBITDA 8.4x 8,353 1 month before 5.13%
EBIT 25.7x 2,730 1 day after -6.33%
Earnings 14.5x 1,414 Pre-rumour -
Advisers
Target Bidder
Financial Deutsche Bank Financial Goldman Sachs
Legal Skadden Arps Slate Meagher & Flom
Freshfields Bruckhaus Deringer
Legal Shearman & Sterling
PR Not disclosed PR Edelman
Monthly M&A report – 113