Daimler has sold its remaining stake in EADS.
That ends the German carmaker’s link to aerospace activities, nearly 13 years after it helped to found the parent company of Airbus.
It is getting 2.2 billion euros for the shares, but one estimate – from a shareholders’ group – is that the involvement cost Daimler 20 billion euros.
The price of EADS stock rose amid strong demand from international investors for the 61.1 million shares .
One of the buyers was EADS itself which purchased 600 million euros worth.
Daimler’s move follows the exit last week of founding French shareholder Lagardere.
EADS was formed in 2000 from the merger of several European aerospace companies, including Daimler’s DASA.
“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,” Daimler’s finance chief Bodo Uebber said in a statement.
Analysts welcomed the move because it helped to remove uncertainty over how Daimler would fund a payout for this year. The proceeds from the EADS stake sale nearly cover the 2.20 euros per share distributed after this month’s annual general meeting, which equates to roughly 2.3 billion euros.
“The transaction should support the attractive dividend yield of Daimler shares, which is the main reason for our hold recommendation,” DZ Bank analyst Michael Punzet wrote in a research note to clients.
UBS increased its dividend estimate to 2.10 euros from a previous 1.75 euros per share.