By NNN-WAM
Dubai : The USD 2 billion Global Strategic Equities Fund (GSEF) founded and sponsored by Dubai International Capital LLC (DIC), the international investment arm of Dubai Holding, has announced that it has made an investment in European Aeronautic Defence and Space Company (EADS).
GSEF acquired 3.12 per cent of the outstanding share capital of EADS, allowing it to become one of the largest institutional shareholders in the company. GSEF's investment in EADS is supported by key limited partners who are co-investing alongside the fund in this strategic transaction.
DIC said Thursday it will not seek an EADS board seat or take an active role in management, but it will seek to build a strategic relationship with the EADS management and shareholders.
This transaction comes less than two months after GSEF made a substantial investment in HSBC Holdings plc, the pre-eminent global financial services firm, becoming one of the leading shareholders in the company.
Both investments are a part of GSEF's mandate to invest in global Fortune 500 companies following the recent closing of its first round of fundraising efforts at USD 1 billion in February 2007. The fund seeks to become a leading shareholder in pre-eminent global large capitalization stocks, whilst aiming to create value through long-term exposure to a concentrated portfolio of undervalued companies.
EADS is a global leader in aerospace, defence and related services. The Group includes the aircraft manufacturer Airbus, the world's largest helicopter supplier Eurocopter and EADS Astrium, the European leader in space programmes from Ariane to Galileo.
EADS is the major partner in the Eurofighter consortium, develops the A400M military transport aircraft, and holds a stake in the MBDA joint venture, the international leader in missile systems.
EADS employs about 116,000 people at more than 70 production sites, above all in France, Germany, Britain and Spain as well as in the United States and Australia. In 2006, the company generated revenues of 39.4 billion euros.
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