Airbus A380 Superjumbo Airliner

German car manufacturer Daimler has sold its remaining stake of 7.5% in European Aeronautic Defence & Space (EADS), the parent company of Airbus, for €2.2bn.

Diamler has exited the aerospace company, more than a decade after it helped found the France-based EADS, as part of its plan to focus on its vehicle business.

The selling price of 61.1 million shares was €37 per share, the top end of the range due to strong demand from institutional investors.

EADS itself purchased 16 million of the shares for €600m as part of the placement.

Daimler’s board of management for finance and controlling and financial services member Bodo Uebber said: "The proceeds from this sale are contributing positively to our free cashflow this year and, in addition to the earnings from our ongoing businesses, will also support our policy of stable dividends."

The carmaker is planning to regain its top slot in the auto business, with CEO Dieter Zetsche vowing to launch new models as part of this strategy.

"The proceeds from this sale are contributing positively to our free cashflow this year and, in addition to the earnings from our ongoing businesses, will also support our policy of stable dividends."

Following the receipt of waiver for a six-month lock-up period on Tuesday, the company immediately began placing its remaining equity in EADS.

This move comes after Lagarde, also a founding stakeholder, concluded its efforts to exit from EADS last week. In 2000, EADS was established from the merger of several aerospace firms in Europe.

The German carmaker received a 30% stake following the creation of EADS, which was significantly reduced over a period of almost 13 years.

In December 2012, the company sold 7.5% stake in EADS.


Image: Diamler was one of the founding stakeholders in France-based EADS, the parent company of Airbus. Photo: file image.

Defence Technology