The Abu Dhabi-based Mubadala Development Company today signed a Memorandum of Understanding with its two partners in the recently acquired Dutch fleet management firm LeasePlan, calling for further cooperation between them in the field of fleet management. In a reception held here today to celebrate the finalization of the acquisition, His Highness Sheikh Mohammed bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Chairman of Mubadala Development signed the MoU. It was also signed by Dr Ferdinand Piech, Chairman of the Supervisory Board of Germany’s Volkswagen Group and Khaled Olayan, the chairman of Saudi Arabia’s Olayan Group.

Mubadala and Volkswagen also signed a EUR 475 million loan agreement with a group of four local and international banks. National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, Barclays Capital and CitiGroup will jointly underwrite and lead arrange the loan facility to fund Mubadala’s acquisition of its stake in LeasePlan.

Mubadala and Olayan Group own 25 percent each in LeasePlan and Volkswagen owns the remaining 50 percent. The three owners paid a total amount of EUR 2 billion for this acquisition. In the MoU, the three sides said that they intend to develop a long term and beneficial partnership and to further grow their currently successful business relationship in the LeasePlan Joint venture.

LeasePlan is the leading multi-brand fleet management services provider in Europe and one of the leading players worldwide. It has total assets of EUR 10.8 billion and 1.2 million vehicles under management in 26 countries. The company made a net profit of EUR 193 million in 2003 and has over 7,000 employees. Mubadala’s purchase of a stake in LeasePlan was made under the directives of President His Highness Sheikh Khalifa bin Zayed Al Nahyan. The acquisition was hailed by observers as a shrewd move to bring in the best technology and expertise in financial services and fleet management, and to contribute to the country’s ongoing economic development.

Established in October 2002, Mubadala is a wholly owned investment vehicle of the Abu Dhabi government. It has the mandate to establish new companies, acquire stakes in existing companies in the UAE or abroad and focus on generating sustainable economic benefits for the emirate of Abu Dhabi through partnerships with local, regional and international investors. The company intends to invest in a wide range of sectors including energy, utilities, real estate, basic industries and services to diversify and further develop the economy of Abu Dhabi.