GOTEBORG, Sweden, March 5, 2004 (PRIMEZONE) -- AB Volvo has sold all its B shares in Scania AB to Deutsche Bank for placement in a marketed offering. As a result of the transaction, Volvo receives about SEK 15 billion.
Volvo's holding of B shares in Scania AB totaled 63.7 million shares, corresponding to about 5.8% of the votes and 31.8% of the capital. The transaction was carried out as part of Volvo's commitment to the EU Commission to divest its Scania shares not later than April 23 this year. After the sale, AB Volvo owns about 27.3 million A shares in Scania AB, corresponding to about 24.8% of the votes and 13.7% of the capital. AB Volvo has undertaken not to divest the remaining A shares in Scania AB in such a manner that would, directly or indirectly, involve public market transactions within a period of 90 days.
Based on yesterday's closing price for Scania's A shares on Stockholmsborsen (the Stockholm Stock Exchange), the total value of Volvo's A shares in Scania AB would amount to SEK 6.2 billion. Combined with the approximately SEK 15 billion in proceeds from the sale of Volvo's B shares in Scania, the total value of Volvo's Scania shares is SEK 21.2 billion compared with the most recently reported book value for the item of SEK 24 billion.
March 5, 2004
The Volvo Group is one of the world's leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services. The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 71,000 people, has production facilities in 25 countries and sells their products in more than 185 markets. Annual sales of the Volvo Group amount to 18 billion euro. The Volvo Group is a publicly-held company headquartered in Goteborg, Sweden. Volvo shares are listed on the stock exchanges in Stockholm, London and Frankfurt and on NASDAQ in the US.
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