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Qatar Sells Part Of Volkswagen Stake,Raises 1.5 Billion Euros

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

SouthGobi’s CEO Arrested, CIC Struggles with Investment

The China Investment Corporation (CIC) has long struggled with its investments in coal assets, specifically in globally-listed coal miner SouthGobi Resources Ltd, which operates its flagship coal mine in Mongolia. In November 2009, CIC and SouthGobi Resources inked a convertible debenture deal. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Qatar Central Bank Deals with MSCI

MSCI, a stock index company whose benchmarks influence investor behavior, has tremendous indirect power impacting the stock markets of smaller economies. In 1988, MSCI released its emerging markets index, a now-widely-used benchmark for many institutional investors wanting access to growth markets. China and South Korea make up the majority of the benchmark, but smaller economies such as Poland, Chile and even Qatar make up other pieces of it.

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bcIMC Buys into Bottling Business with PAI in €1.623 Billion Takeover of Refresco

Dutch soft-drink bottler Refresco Group N.V. has agreed to a buyout offer for all 81.2 million of its shares from French private equity firm PAI Partners SAS (PAI) and Canadian pension manager British Columbia Investment Management Corporation (bcIMC) in exchange for €20 in cash per ordinary share for a total consideration of €1.623 billion. Refresco’s major shareholders, which includes 3i Group, and shareholding members of its boards, who represent 26.5% of outstanding shares, have said they stand behind the deal.

Refresco’s board rejected an initial offer from PAI in April 2017 of €1.4 billion, which they felt did not adequately capture the value added by their plans to bolster its presence in North America through the acquisition of Canadian bottler Cott TB, a deal that went through in July for US$ 1.25 billion.

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