The Geely decided to reduce its stake in Volvo Car, thus responding to investors’ concerns about the limited “free float” of the Swedish automaker.
The Chinese company, which has a network of interests in the automotive sector in Europe, in addition to 82% of Volvo Car, has decided to put 100 million shares of the company on the market at 37 Swedish crowns (€3.21) each, which represents 3.4% of the share capital, leaving Geely with a stake in Volvo of 78.7%.
In a statement, the Chinese group has already announced that it will not invest the money raised from the sale of shares in Volvo. “The resources resulting from this sale are intended to be used to support business development within the group.”
It is worth remembering that Geely, in addition to Volvo Cars, also has stakes in Lotus and Aston Martin.
