Activist hedge fund Cevian Capital has agreed to sell its entire shareholding in AB Volvo (Volvo) to Zhejiang Geely Holding Group (Geely Holding), subject to regulatory approval.
The acquisition comprises 88.47 million A-shares and 78.77 million B-shares, corresponding to 8.2 per cent of the capital and 15.6 per cent of the votes, which represents the largest ownership in AB Volvo by capital and the second largest by votes.
Nomura International Plc and Barclays Capital Securities Limited will acquire Cevian Capital’s shares in AB Volvo and then ell the shares to Geely Holding/
Cevian Capital’s co-founder, Christer Gardell (pictured), says: “Today’s announcement concludes over 11 years’ ownership in AB Volvo by Cevian Capital. During Cevian Capital’s ownership, AB Volvo has been transformed into a more competitive and valuable company, through strengthened governance, improved efficiency and increased focus on its core business. This is reflected in structurally improved profitability and a higher market value. We are proud to have played a role in this positive development.
“AB Volvo is now leading the industry into a new era. The agreement will not only give AB Volvo a new large and committed shareholder, but one with significant expertise in strategically important areas for future value-creation, such as electrification, autonomous driving, connectivity and the Chinese market.”
Geely Holding Chairman Li Shufu, says: “We are delighted to have reached agreement with Cevian to acquire its holding in AB Volvo, making us the largest shareholder by capital in a company that leads the world in many aspects of commercial vehicle development, manufacturing and sales. Given our experience with Volvo Car Group, we recognise and value the proud Scandinavian history and culture, leading market positions, breakthrough technologies and environmental capabilities of AB Volvo. We will support the Board of Directors and the management of AB Volvo in their continued execution of the current strategy.”
Daniel Donghui Li, Executive Vice President and Chief Financial Officer of Geely Holding, adds: “Geely Holding is a well-recognised strategic long-term investor, and as such we aim to contribute positively to the long-term development of AB Volvo. Geely Holding will be able to contribute its global knowledge, Chinese market expertise and leading research and development capabilities especially in the fields of electrification, autonomous driving and connectivity, to AB Volvo to further its global development, and strengthen the Volvo brand.”
