IPIC eyes Aabar takeover

Dubai: Abu Dhabi government-owned IPIC said on Monday it planned to take a majority stake in Aabar Investments to help the firm invest in sectors across the region, including in energy.

International Petroleum Investment Co said it would buy Dh6.684 billion ($1.82 billion) worth of convertible bonds.

IPIC is rapidly expanding in the international oil and gas sectors. The company invests in oil and gas related assets for the Abu Dhabi government, which controls more than 90 per cent of the oil reserves in the UAE, the world's fifth-largest oil exporter.

The bonds it buys would be convertible into 2.23 billion ordinary shares in Aabar at a conversion price of Dh3 per share.

The bonds would pay a floating rate coupon of three months Emirates Interbank Offered Rate plus 1.95 per cent per annum, to be payable quarterly in arrears, IPIC said, adding that maturity date would be November 30, 2009.