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
German Car Rental Company Nextmove Cancels its $5M Tesla Order Over Quality Issues
NIO Co-founder and Former VP Resigns from the Company
Volkswagen Reports a 3.3% Drop in Vehicle Deliveries for July
U.S. Automakers GM, Ford Planning for Possible Economic Downturn
Tesla Owner Files Lawsuit Claiming the Automaker Reduced the Battery Power of the Model S
Ride-Hailing Giant Uber Posts $5 Billion Loss as Growth Slows
Honda to Recall 222,674 Accord Models in China Over Engine Problems
Audi Unveils e-tron Electric Scooter, Skateboard Combo
- How Will Self-driving Vehicles Keep Passengers Safe in Natural Disasters?
- Driverless Software Startup Immense Simulations Receives $4.6 Million in Series A Funding
- BMW Unveils the Fully-Electric MINI Cooper With a Long List of Tech and Not Much Range
- General Motor’s Pulling Maven out of Eight Cities
- Mercedes Benz Working On Electric E-Class Sedan to Rival the Tesla Model S
- General Motors CEO Defends Plan to Sell its Shuttered Ohio Assembly Plant to EV Startup Workhorse
- Tesla’s Fremont Factory Being Revamped to Build the New Model Y and a Refreshed Model S, Reports Say
- Ford Acquires Robotics Company to Speed up the Development of Self-Driving Cars
- Jaguar Land Rover Researching a Sensory Steering Wheel to Keep Drivers Attentive
- Ford Will Introduce its Tesla Model Y Rival Later This Year