Zhejiang Geely Holding Group (hereinafter referred to as Geely Holding) announced on Thursday that it intends to liquidate the Class B shares it holds in truck manufacturer Volvo Group. Based on the closing price in the Stockholm market, the value of these shares is SEK 14.46 billion (approximately equivalent to $1.32 billion).
It is reported that after the liquidation of these Class B shares, Geely Holding will still be the second largest investor of Volvo Group, holding 88.5 million Class A shares. Geely Holding believes that this adjustment is in line with its long-term strategy.
The transaction terms show that Geely Holding sold 49.5 million shares through Bank of America Securities, Goldman Sachs Europe, and Barclays. According to the transaction terms, the indicated price of Volvo Group Class B shares in this sale is SEK 285.9 per share.
Official data shows that in March this year, Geely Holding’s total sales were 260,700 vehicles, a year-on-year increase of 23%. Among them, the sales of new energy vehicles were 94,900 vehicles, a year-on-year increase of 21%; in the first quarter of this year, Geely Holding’s cumulative sales were 738,400 vehicles, a year-on-year increase of 27%.
The news dragged down the stock price of the Volvo Group listed in Stockholm, Sweden, to fall nearly 6% on Friday, and Geely Automobile fell by 2.65%, closing at 8.81 yuan.
