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Volvo Vehicles stated on Friday it plans to distribute 62.7% of its stake in Swedish electrical car maker Polestar Automotive Holding value 9.5 billion crowns ($920.17 million) to its shareholders.
Following completion of the proposed divestiture, Sweden-based Volvo Vehicles stated it might retain an 18% stake in Polestar.
Sweden-listed Volvo Vehicles' heavy involvement in Polestar, the place it holds about 48% of the shares, has been criticized by analysts, who see the stake as a pressure on Volvo's sources.
Jim Rowan, President and CEO of Volvo Vehicles, stated, “Since we’ve got important operational collaboration and monetary relationships with Polestar, it’s logical for us to take care of affect by way of a minority stake of 18% in Polestar.”
The corporate stated it has a monetary relationship with Polestar by way of an excellent convertible mortgage of $1 billion.
China's Zhejiang Geely Holding, the bulk proprietor of Volvo Vehicles, will proceed to supply operational and monetary assist to Polestar.
Volvo Vehicles stated the stake might be distributed by way of a 2:1 share break up, adopted by an computerized share redemption course of.
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