UAE’s Aabar to buy a 32-per cent stake in Virigin Galactic for $280 million
29 Jul 2009
UAE's Aabar Investments PJSC, an investment company with majority share held by Abu Dhabi government, has agreed for a strategic partnership with billionaire Richard Branson's Virgin Galactic, the world's first commercial space-line, by acquiring 32 per cent equity stake for $280 million.
The deal was signed during a private airshow held in Oshkosh, Wisconsin yesterday by the president and founder of Virgin Group, Richard Branson and Mohamed Badawy Al-Husseiny, the CEO of Aabar in a ceremony held alongside Virgin Galactic's new carrier space launch vehicle, WhiteKnightTwo (VMS Eve) which made its public demonstration flying debut.
"The initiative will leverage the solid financial backing of Aabar and the pioneering technology and strong global relationships of Virgin Galactic," said Branson.
Aabar is owned by Abu Dhabi government through its fully-owned International Petroleum Investment Co. (IPIC), which holds around 71 per cent stake in Aabar. Abu Dhabi is the richest of the seven emirates of the UAE, holding most of the country's oil reserves.
The deal values the business of Virgin Galactic at $900 million. Apart from its 32 per cent stake, Aabar has committed $100 million additionally to fund small satellite launch capability and also gain exclusive regional rights, subject to regulatory clearances, to host Virgin Galactic tourism and scientific research space flights and building of spaceport facilities in Abu Dhabi in the future.
The transaction is subject to regulatory clearances in the United States and elsewhere.