Companies in the Volvo Group have signed an agreement to sell commercial real
estate to companies jointly owned by Hemfosa Fastigheter AB and AB Sagax, and to
companies owned by AB Sagax. The purchase consideration, on a cash and debt free
basis, is expected to be approximately SEK 2 bn. At the time of completion of
the transaction, net financial debt in the Volvo Group’s Industrial Operation is
expected to be reduced by approximately SEK 1.9 bn. The transaction is expected
to have a positive impact on the Group’s operating income of approximately SEK
900 M in the second quarter of 2014. Completion of the transaction is subject to
approval from the Swedish Competition Authority.
The transaction covers to a large extent real estate in Gothenburg owned by the
Volvo Group and leased to external tenants. The Volvo Group has decided to sell
the real estate as it has been deemed not strategic for the Volvo Group to
continue as landlord and owner. The transaction also includes properties in
Denmark, Sweden and Finland, where the real estate to a large extent will be
rented by companies in the Volvo Group.
The transaction is expected to have a positive impact on operating income in the
segment “Trucks” of SEK 200 M and in the segment “Group functions, corporate
functions and other” of SEK 700 M in the second quarter of 2014.
The transaction is expected to be closed in the second quarter of 2014.
March 28, 2014
Journalists who wish further information, please contact Karin Wik, + 46 31 323
For more news from the Volvo Group, visit http://www.volvogroup.com/globalnews.
AB Volvo (publ) may be required to disclose the information provided herein
pursuant to the Securities Markets Act and/or the Financial Instruments Trading
Act. The information was submitted for publication at 08.30 am CET, March 28,
GlobeNewswire, a NASDAQ OMX company, is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.