Chinese Automaker Geely Plans to Retain its Stake in Swedish Truckmaker AB Volvo
【Summary】Geely denies media reports that it was gearing up to sell its stake in Swedish truckmaker AB Volvo.
STOCKHOLM (Reuters) - Chinese automaker Zhejiang Geely Holding Group intends to remain a long-term investor in Swedish truckmaker AB Volvo, a source close to the Chinese firm said, denying media reports that it was gearing up to sell its stake.
Geely became Volvo's second largest owner by voting rights last June after assuming an 8.2% stake in the company that came with 14.9% voting rights.
The move followed Geely's purchase of a 10% stake in Volvo's main rival Daimler, raising questions in Sweden about its intentions for one of the country's largest employers.
Geely Sweden Financials Holding AB, its holding group in Sweden, earlier this month borrowed 400 million euros ($455 million) in a zero coupon bond due 2024.
The bond is guaranteed by and exchangeable into Series B shares of Volvo, according to Geely's advisor on the deal.
Swedish daily SvD reported on Thursday that the bond's setup would allow the borrower a choice to convert his securities into Volvo shares after three years and had quoted experts as saying that this was the first sign that Geely could dump its holding.
A source close to Geely said, "This is absolutely wrong. Zhejiang Geely Holding Group will continue to be a long-term investor in AB Volvo."
A spokesman for Volvo deferred all questions to Geely and said that while the truckmaker had an open dialogue with its shareholder on many fronts, it would not be drawn into any specifics.
While Geely has managed to strike several deals with Daimler since gaining exposure to the company, it has not managed to build similar inroads at Volvo, managing to secure neither board representation nor any new partnerships since last June.
resource from: Reuters
New Premium Electric Vehicle Brand Zeekr Is Exploring IPO Options in the U.S. or Hong Kong, According to Sources
Ford Announces the Largest Utility Agreement in the U.S. History to Assemble All of its Vehicles in Michigan Using 100% Renewable Energy by 2025
Lucid’s New ‘Stealth Look’ Appearance Package for the Electric Air Sedan Compliments its High Performance DNA
Volkswagen Announces Pricing and Styling Updates for the 2023 ID.4 Electric SUV, Which is Being Assembled in Tennessee
Ford Unveils the F-150 Lightning Special Service Vehicle, a Fully Electric Pickup for Police Departments
Volkswagen Group China Unveils its ‘Flying Tiger’ Electric Vertical Take-Off and Landing (eVTOL) Passenger Aircraft Prototype
Volkswagen Starts Production of the Electric ID.4 SUV in Tennessee, Presents New Competition for Tesla, GM and Ford
Lucid Group Hires Key Executives that Formerly Worked for Mercedes-Benz and Tesla as it Prepares for Global Expansion and Production Ramp Up
- Toyota to Collaborate with Redwood Materials to Build a Closed Loop, EV Battery Recycling Ecosystem in the U.S.
- SK Inc. Invests $100 Million in North Carolina-based EV Charging Hardware Developer Atom Power
- LiDAR developer Luminar Technologies Hires Ex Apple, Tesla and Nvidia Execs as it Prepares for Growth
- Specs and Photos of NIO’s New ES7 Electric SUV Revealed in a Regulatory Filing in China Ahead of its Launch
- GM's Rebate of up to $6,000 on the Bolt EV and EUV Has a Big Stipulation
- J.D. Power Study Finds That EVs Are More Problematic Than ICE Cars
- GM’s Plan to Sell More EVs Than Tesla Hinges on Offering More Affordable Electric Models
- Electric Truck Maker Rivian Opens the First Fast Chargers in Colorado for its Nationwide ‘Adventure Network’
- Polestar Shares the First Image of the Polestar 3 Electric SUV Ahead of its October Debut
- Honda and LG Energy Solutions to Build a $4.4 Billion Joint Venture EV Battery Plant in the U.S.