BMW, Honda , and Toyota are no longer involved in F1. Renault is contemplating withdrawal as a constructor. Ferrari has recently complained about the mismanagement of F1. Ari Vatanen recently: "Formula One is only known for conflict, crisis and court cases recently, and big companies cannot afford that" For such a company let us hope Aabar gets a very sweet deal. Can Aabar also change the governance at F1? If they could, would they do a good job of it? It sounds like Aabar is getting into another very risky business. It makes sense if they get F1 at a very cheap valuation.
BMW, Honda , and Toyota are no longer involved in F1. Renault is contemplating withdrawal as a constructor. Ferrari has recently complained about the mismanagement of F1. Ari Vatanen recently: "Formula One is only known for conflict, crisis and court cases recently, and big companies cannot afford that" For such a company let us hope Aabar gets a very sweet deal. Can Aabar also change the governance at F1? If they could, would they do a good job of it? It sounds like Aabar is getting into another very risky business. It makes sense if they get F1 at a very cheap valuation.
...leave it to the experts!
F1 is a huge business, and growing.
The numbers are mind blowing.
As far as the governance of F1, what you read is just to spice things up.
Aabar have a superb opportunity here, and I for one, feel they will grasp it with both hands and won't let go.
What a marriage. Ross Brawn's brains and Aabar's cash. Fantastic.
F1 is such a profitable business to be associated with that it makes sense for Japanese tyremaker Bridgestone Corp to exit F1 next year, recently announced, following Michelin in 2006 and Goodyear in 1998.
What is happening with F1 is indicative of a much weaker economic environment. As I said, let us hope Aabar is entering its stake very cheap.
As I said, let us hope Aabar is entering its stake very cheap.
Daimler and Aabar are paying for Ross Brawn's brains!
Ross Brawn's technical knowledge out weighs any of the other constructor's techy people.
Their investment is in Brawn (Ross Brawn). Thats what they are paying for...and the best always comes at a price.
Ask Buffett...and it hasnt done him any harm.
I take on your points Faye, but its not about whos supplying the tyres, and whether people are supposedly falling out, its about who's got the brains to make their cars stand out above the crowd, and win races.
There are 3 global sporting events to get the message out.
DUBAI - Abu Dhabi's Aabar Investments (AABAR) is looking to beef up its stake in German carmaker Daimler AG, Aabar chairman said on Monday.
Daimler in Germany declined comment on Aabar's intentions, which would be in line with Abu Dhabi's plans to diversify its economy away from heavy reliance on oil revenue.
Asked whether Aabar was considering boosting its position in Daimler, Khadem al-Qubaisi told Reuters by telephone: "Yes." He did not elaborate.
Aabar, an investment firm controlled by the International Petroleum Investment Co (IPIC), which is wholly owned by the government of Abu Dhabi, holds a 9.1 percent stake in Daimler.
Earlier on Monday, Daimler and Aabar agreed to jointly acquire the majority of champion Formula One team, Brawn GP, strengthening ties between the two firms.
IPIC is one of the investment vehicles used by the Abu Dhabi government to invest oil income. Abu Dhabi pumps most of the oil produced by the UAE, the world's third-largest oil exporter.
In March, Aabar purchased a 9.1 percent stake in Daimler, saying then it would pursue joint strategic projects.
In August, Aabar said it was setting up vehicle and engine manufacturing plants in Algeria with five German firms, including affiliate Daimler.
Fuelled by a six-year oil boom, Abu Dhabi has invested billions of dollars in developing its infrastructure and propelling itself on the global stage.
It is already building a cultural island district, housing offshoots of the Louvre and Guggenheim museums.
IPIC's chairman Shaikh Mansour bin Zayed al-Nahyan last year bought British Premier League soccer club Manchester City.
Aabar has been on the expansion trail since IPIC took control of the firm last year.
Aabar mulls upping Daimler stake after Brawn's F1 deal
DUBAI/FRANKFURT: Daimler's largest shareholder Aabar (AABAR) wants to beef up its 9.1 percent stake in the German carmaker after teaming up to jointly acquire a majority of Formula One champions Brawn GP.
Shares in Daimler rose over 4 percent on the back of comments from Aabar Chairman Khadem al Qubaisi that the Abu Dhabi-listed investment company was "in talks" to raise its holding to 15 percent. The timing would depend on the stock price, he said.
When asked on Monday whether Aabar was considering raising its interest in Daimler, al-Qubaisi said by telephone "yes", without elaborating further.
The listed non-energy investment arm of Abu Dhabi sovereign wealth fund IPIC, invested 1.95 billion euros ($2.9 billion) in March year to overtake the Gulf state of Kuwait as Daimler's largest shareholder.
Raising its interest to 15 percent would require buying an additional 62.7 million shares, which would cost Aabar another 2.24 billion euros at current prices.
Daimler declined to comment on Aabar's statements. Abu Dhabi pumps most of the oil produced by the United Arab Emirates, the world's third-largest oil exporter. Fuelled by a six-year boom in oil prices, the emirate plans to diversify its economy away from its heavy reliance on petroleum.
In August, Aabar said it was setting up vehicle and engine manufacturing plants in Algeria with five German firms, including Daimler.
Gulf states have been avid investors in German automotive firms. Natural gas-rich Qatar has taken a 10 percent voting stake in Porsche SE and plans to buy 17 percent in Volkswagen's ordinary shares.
DAIMLER RACING HERITAGE
Aabar's al-Qubaisi, who has said he owns a Mercedes-Benz SLR super sportscar, said in March he would be a more active investor than Kuwait and had not excluded the possibility of gaining a seat on the supervisory board.
So far, the Aabar chairman and IPIC chief executive has kept his promise, buying roughly 4 percent of electric car start-up Tesla Motors from Daimler in July, affirming the oil-rich emirate's desire to expand into low-emission technology.
The latest project to strengthen ties to Daimler is Monday's announcement of jointly acquiring a majority holding in the champion Formula One team, Brawn GP, weeks after the inaugural Abu Dhabi Grand Prix.
Daimler will own 45.1 percent of the team, with Aabar controlling another 30 percent. The remaining 24.9 percent will continue to be held by the current owners.
"The new Mercedes Grand Prix racing team will compete in the 2010 Formula One World Championship under the continuing leadership of team principal Ross Brawn," Aabar said on Monday that did not disclose financial details.
The Brawn deal emphasized Daimler's commitment to its Formula One racing heritage, just as other teams like BMW and Toyota were pulling out of the circuit amid the considerable costs.
Its amazing how one thing leads onto another...
Virgin Gatlic, the "Spaceship" company owned by Richard Branson, which Aabar have taken a 30% stake in, is also a lead sponsor for Ross Brawn.
Ross and Richard are good friends.
When Ross was looking for sponsorships for his new team, he approached Richard Branson and asked if he wanted his logo on the front of his car...
Richard said, "ok, but you havn't won any races, so how much will it cost me to put my logo on the front of your cars"...apparently they agreed £250,000 per race...
half way through the season, after his cars were winning race after race, Ross approached Richard and said "...its going to cost you a lot more than £250,000 per race next season..."
I wonder who'll have their logo on the front of the cars in 2010! Aabar or Virgin ... or "Virgin Gatlic"
Aabar CEO announced their interest to buy more DAi share two weeks back, I had a post at the time
I like Aabar because it diversify my risk to DFM and to US$, but I'm not sure it would be a good move for Aabar to buy additional shares in DAI at the current price...
According to many analysts DAI correct price is over the fair value already.
I don't think this is the reason for the continuous slow accumulation (or may be professional dumping ?) of Aabar
But
May be when Aabar made the original deal< there was an option to buy more at the same price?
If any such arrangement was made and not publicly disclosed then I will kiss the local markets good buy...zero transparency
Didnt expect to see any surprises today, but it was good to see the script stand on the dhs2.52 low.
This has been the low for the last 4 sessions, and seems to represent a reasonable support.
As far as the Aabar deal with Daimler and Ross Brawn, its a simple "Route to Market" that they are buying.
The published figure of £110 million for their stake in the new Brawn GP team, is a good price.
This will give them global exposure to do what they want with, and £110 million, thats cheap.
Teamed up with Mercedes makes this a perfect marriage.
As far as the deal with Daimler, we'll just have to wait and see what Aabar come out with, but in the meantime i cannot help but feel that this is a smart move for Abu Dhabi, the UAE, Aabar, and Aabar's Investors.
No doubt in time details of the complete Daimler, Aabar, Brawn, Mercedes will be published and made available to the Investors, and then if anyone has anything to pick at, then will be the time.
Didnt expect to see any surprises today, but it was good to see the script stand on the dhs2.52 low. ...
GPIC
I did not expect to see any Aabar surprise today or this months, either. It would be much after they complete the accumulation (or dumping)
I'm just highlighting the strange behavior of the this stock trading in very tight range bound indicating either accumulation (likely) or professional dumping...
I do like the stock, I'm suspicious something is cooking up !
Good or bad is the question?
Is it related to the plan for additional stake in DAI ?
We may know by year end...only after it is too late
i guess ur right,i am fed up now holding this Stock.
it isnt ready to move at all beyond its narrow range of 2.5 to 2.7
not even sure if it will pick up at even year end.
i really think this share needs F1 power to propel forward now
i really think this share needs F1 power to propel forward now
Hi Aero
......the best way to look at Aabar is it’s a bit like Berkshire Hathaway and is a Long Term Investment...
It’s not a "buy today at dhs2.55, and sell tomorrow at dhs2.65 stock...!"
You either get it, or you don’t. If I am right what i think about Aabar, and it has change considerably since the Virgin Gatlic “spaceship company”, and now Brawn GP/Mercedes GP deal, i can now see where Aabar are going.
Look at the acquisitions they’ve made since diversifying from drilling for oil and gas...!
“Plots of land”, “Private Banking”, “Developments”, “World Class Car Marker” , “Manufacturing”, “Space Travel”...and now “F1”...it’s genius.
Who wants to drill for something that’s high risk, when here you get a diversified investment across a broad of assets.
The more I think about the F1 deal, the more I think its perfect. The revenues generated on advertising alone is worth the amount the deal that has been made.
It will give Aabar a 30% slice of the profits on the Sponsorship deals, and with Brawn heading the team, they’ll be expecting a repeat performance in the coming seasons.
Mercedes will be promoting “Mercedes”, Aabar will be promoting Abu Dhabi and whatever else they are involved in.
Aabar’s share price is going to take a while to adjust to the future potential revenues and profit, but my guess is that when it all settles down dhs2.50 will look like small change!
If you expect miracles before the end of the year, i don’t think you’ll find it here. But if you are looking for somewhere to put you investment in, and are prepared to wait, i don’t think there will be any better opportunities.
It’s going to be a “sit back, relax, take a vacation” stock!
i really think this share needs F1 power to propel forward now
Aabar share is tricky.
It tried today to push, but failed.
I was holding this share for a long period. Fed up and sold one month before.
Will start to buy only after getting some confirmed upward movements. It is better to do same; we may loose only some 2-3% that you can make from the other stock you switched in.
Will start to buy only after getting some confirmed upward movements.......
Sensible plan. I am sure that there are a lot waiting to see it breakout.
Why have your money tied up if you think you can make it work elsewhere.
When the breakout happens, and it could be tomorrow, next week, next month, next year..., I guess it will be pretty sharp. If the liquidity is there, people will be happy to have this in their portfolio.
What it needs is some simple "Investor Relations Questions and Answers" from Aabar to the Investors, so that everyone gets a better understanding of what's behind their plan.
I am sure that Aabar will do this in time.
In the meantime you have to make you own decisions, and i understand your logic. Guess thats why you are "SmartMoney".
I really like your enthusiasim for AABAR,
even i was initially excited about this company as you are right now,
FYI,i bought this share from investment perspective and now i am holding it for quiet long
AABAR definiitely needs to rework its strategy for positive marketing,otherwise 2.7 will also look an expensive price to hold,if investors start loosing their patience...
I agree with you GPIC, my view is that Aabar has invested huge amount of money and the managment will not allow to fail or disappoint the government and the shareholders. The major positive factor with Aabar is the support of Abudhabi (IPIC). Though the share is risky and its worth taking the risk compared with the expected return.
The whole idea and concept of accumulation to get you fed up.. The accumulator usually plays the stock in very narrow range so that he get the others fed up and sell..
The Bollinger bands detects this pattern.. when it narrows down so much for sometime, it increases the possibility of breakout after
Though the share is risky and its worth taking the risk compared with the expected return.
Good morning Maq.
I totally agree.
Its what investing is all about.
Nothing comes without its risks. Everything we do has an element of risk to it.
Deciding to investing in Aabar at this point is a risk, because of the lack of history. However, you have to look at the bigger picture and make your own mind up.
Its not a simple "Buy Recommendation", no, what it is is a "One to keep a very close eye on" and when the time is right, jump in.
Whats the worst. You sit on the sidelines and watch it grow over 2 days (limit up) and think you have missed the rally.........that would take the stock to dhs3.30.......
...for a Long Term investment, if things move the way i think they will go, dhs3.30 would be loose change!
Did u see the fall in AABAR share today?
its the biggest one day fall i have seen after long time,today
it broke its support of 2.5, maybe Thaj u can do a technical analysis
on it and advise technical outlook for this stock.
it broke its support of 2.5, maybe Thaj u can do a technical analysis
...not as surprised as i was .
There's a post in here somewhere, where i titled it "Aabar, Energy or Investment", or something like that, and i talked about whether Aabar should be classed as an Energy Stock or an Investment Stock.
The reason i say this is that Taqa, a real energy stock, seems to be taking the Energy index lower, and this is pulling Aabar down with it.
Aabar's low today of dhs2.43 has not been this low since 2nd September, and there is absolutely no reason i can see as to why this should be being dragged down.
I wonder if ADX/Aabar has any plans or re-classifying Aabar in a more suitable index, now it is diversifying so much.
AABAR made an announcement this morning that it intends to buy a 73-storey luxury apartment building and a hotel in New York City.
That added to the car company, the F1 team and a Space Tourism business is an "eclectic mix" ... Perhaps a little bit too eclectic for the market ... hence the sell off!
AABAR made an announcement this morning that it intends to buy a 73-storey luxury apartment building and a hotel in New York City.
Hi ix
Wasnt that in yesterdays?
I would have thought given the location of this latest gem, it would have given the stock a tickle!
Have you seen where this is... whats the saying in property, "location location location".
Aabar is a Long Term investment and todays drop has more behind it than Aabar's choice of investments. (See my other post on Aabar, Energy or Investment).
...if they decided to open up an "ice-cream shop" on the moon for their "Spaceship" business, i would then think they had lost the plot, but at the moment Aabar seems to making the right decisions.
Yea it probably got announced yesterday after the exchange closed.
Time will tell if NYC property is a good investment (history suggests it is) but it certainly isn't a short-midterm game (nor is the Lunar Ice Cream Franchise )
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