The Kuwait Wealth Fund sells Mercedes shares worth $1.5 billion

 Kuwait currently owns 6.8% of Mercedes.

The Kuwait Investment Authority decided to sell about 20 million shares in the Mercedes-Benz Group - nearly a quarter of its stake - after the automaker's share nearly quadrupled over the past three years.

According to a statement, the General Investment Authority will own about 53 million shares after completing the share offering, which is part of an effort to diversify its portfolio.

The Kuwait Wealth Fund sells Mercedes

  • At a guide price of €69.27, the stake for sale would be worth around €1.4 billion ($1.5 billion).

  • Mercedes shares closed up 0.6% at 71.89 euros on Tuesday in Frankfurt and traded near an all-time high.

  • CEO Ola Källenius has focused the automaker on more profitable segments and scaled back its entry-level model offering, resulting in a 43% increase in the average price of a Mercedes since 2019.

  • He has also spun off the luxury car company from the commercial vehicle operation, spinning off Daimler Truck Holding AG in late 2021.

  • Kuwait currently owns 6.8% of Mercedes, making it it's the third largest owner, according to data compiled by Bloomberg.

  • KIA Wealth Fund - the oldest and one of the largest wealth funds in the world - has been a shareholder in Mercedes for nearly 50 years.


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