Kuwait wealth fund sells €1.4 bln of Mercedes shares

Kuwait wealth fund sells €1.4 bln of Mercedes shares

The Kuwait Investment Authority launched a sale of about 20 million shares in Mercedes-Benz Group AG — roughly a quarter of its stake — after the carmaker’s stock almost quadrupled over the last three years.

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The KIA will own around 53 million shares after completing the share placement, which is part of an effort to diversify its portfolio, according to a statement. At the guided price of €69.27, the stake for sale would be worth about €1.4 billion ($1.5 billion).

Mercedes shares closed up 0.6 percent at €71.89 on Tuesday in Frankfurt and have been trading near an all-time high. The KIA had informed the company of its decision and it plans to remain a key shareholder in the automaker, the German company said in a separate statement.

Chief Executive Officer Ola Källenius has focused the automaker on more profitable segments and pared back its offerings of entry-level models, leading to a 43 percent surge in the average price of a Mercedes since 2019.

He also split the luxury-car company from its commercial vehicle operation, spinning off Daimler Truck Holding AG in late 2021.

While the luxury strategy has boosted earnings, Mercedes