German carmaker Daimler has successfully completed the sale of its stake in Airbus parent EADS, exiting its aerospace interest after 13 years of ownership.
The company said that it placed 61.1 million stocks at a price of €37 a share, accumulating gross proceeds of €2.2bn ($2.9bn, £1.9bn). As part of the deal, EADS repurchased its 16 million shares worth €600m.
"We have concluded a very successful transaction, enabling us to fully participate in the positive development of the EADS share price," Bodo Uebber, Daimler's chief financial officer said in a statement.
"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."
Analysts were concerned about how Daimler will pay its dividend this year, and the deal would enable the company to cover the expense. The company had declared a dividend of €2.20 per share after its annual general meeting, resulting in a cash outflow of about €2.3bn.
As announced previously, Daimler has entered into a contract with Goldman Sachs and Morgan Stanley to retain certain upside participation in the EADS stock prior to the end of 2013. Goldman Sachs and Morgan Stanley were in total allocated 8 million shares in the offering to establish their hedge position.
Daimler said on Tuesday that it received a waiver from a six-month lock-up period and began placing its remaining 7.5 percent stake in EADS.
Last week, EADS' founding shareholder Lagardere sold its holding in the company so that the aerospace group that was formed in 2000 with the merger of several European firms would have a larger free-market float.
Daimler received a 30 percent stake in EADS after the merger that included its aerospace division DASA. Daimler has gradually divested its stake in EADS.