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09 January 2020

Abu Dhabi’s Mubadala sells $947 million UniCredit stake

Abu Dhabi’s sovereign wealth fund acquired the stake in 2010 as part of its strategy to diversify investments from the emirate’s oil-based economy and at the time the holding was valued at about EUR 1.8 billion.

The stake sold by Mubadala is valued around EUR 850 million euros ($947 million).

Abu Dhabi’s Mubadala Investment Company has more than halved its shareholding in UniCredit as the holder of about six per cent of the world’s oil reserves sells stakes in overseas assets, reported Bloomberg.

According to Consob, the Italian market regulator, the fund’s stake declined to around 2.02 per cent in December 2019 from a 4.99 per cent stake in June 2019. The stake sold by the state investor is valued around EUR 850 million euros ($947 million).

The fund which was established as a means of diversifying the economy by attracting expertise and jobs to the emirate is now a global investing powerhouse. The fund has invested in Greek fish farming, Europe’s biggest electric-scooter-sharing company and a Canadian data centre.

The reduction of the state investor comes less than one month after UniCredit Chief Executive Officer Jean Pierre Mustier announced new business strategy. The lender's new strategy is aimed at rewarding investors through share buybacks and dividends totalling EUR 8 billion.

Mustier is seeking to drive investor returns while signalling that the bank—in common with many of its peers—is struggling to boost growth in a time of negative interest rates. Revenue and costs are expected to be little changed through 2023 and the bank will focus on eking out what it can on its own rather than attempting major acquisitions.

According to the bank’s WordPress website design, UniCredit’s main investors are BlackRock and Dodge & Cox with around five per cent stake each.


RELATED STORIES: Mubadala Investment Company Consob UniCredit





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