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Qatar Sells Part Of Volkswagen Stake,Raises 1.5 Billion Euros

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According to the Wall Street Journal, “Qatar’s sovereign investment fund Tuesday sold 25 million preference shares in German auto maker Volkswagen AG, raising EUR1.5 billion, but still plans to build its voting stake in the company. The fund, VW’s third-largest shareholder, said it would sell the shares, which don’t have voting rights, to boost their liquidity. However, the move comes after a recent fall in their value and as VW is about to issue new preference shares, which would dilute Qatar’s holding. The fund said it still wants to increase its holding of VW’s ordinary shares, which have voting rights, to 17%. Qatar had a 6.78% stake Aug. 28, according to VW’s Web site.

Qatar Holding LLC’s sale of VW shares follows a similar move by the Persian Gulf sheikdom regarding its holdings in Barclays PLC. After helping pump billions of fresh capital into Barclays last year, Qatar in late October sold down a stake in the bank worth more than $2 billion at the time.

A person familiar with Qatar’s thinking at the time said the move was made to book profits after Barclays shares recovered sharply from their financial-crisis lows. Despite the selloff, Qatar said it would continue to be a long-term investor in the bank.

Qatari officials weren’t immediately available to comment Tuesday. In a statement, the fund said it plans to remain a long-term strategic investor in VW and supports the auto maker’s plans to merge with sports car maker Porsche Automobil Holding SE.

‘Volkswagen remains a key investment asset for (the fund) and we have been pleased with our investment in Volkswagen so far,’ Qatar Holding said.

read more: Wall Street Journal

Saudi Aramco and PIF See Opportunities in Russia

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Saudi Arabia’s Public Investment Fund (PIF) is currently exploring opportunities within Russia. PIF is working with the Russian Direct Investment Fund (RDIF) on a number of fronts. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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HNA Group Aims to Shrink and Sell

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Chinese conglomerate HNA Group is on a selling spree due to an order from the government in Beijing to scale back on debt. HNA Group joins Anbang Insurance Group and Dalian Wanda Group in deleveraging from global assets, particularly in hotels and real estate. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Central Bank of Hungary Buys Mounds of Gold

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In October, the Central Bank of Hungary (MNB) boosted its gold reserves by 10 times, from 3.1 tons to 31.5 tons. This was revealed on October 16, 2018. The gold acquired by the central bank in October has a holding value of US$ 1.24 billion.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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