Volvo has proposed that proceeds from the A$2.96 billion sale of UD to Isuzu go directly to shareholders
AB Volvo’s board of directors proposes that the proceeds from the sale of UD Trucks are to be distributed to the shareholders and will convene an extraordinary general meeting for a resolution on the proposal.
The proposal entails a distribution of SEK 9.50 (A$1.48) per share, corresponding to approximately SEK 19 billion (A$2.96 billion).
Read about Volvo’s sale of UD to Isuzu, here
The extraordinary general meeting will be held on June 29, 2021.
“The Board believes that the Volvo Group’s improved profitability, resilience in downturns and strong financial position enable a distribution of the proceeds from the sale of UD Trucks to the shareholders,” says AB Volvo’s chairman Carl-Henric Svanberg.
“Even after the distribution, the group is financially strong with resources to invest in future technologies and business models that drive the transition to fossil-free transports and a more sustainable society,” says Svanberg.
Volvo says the notice to attend the extraordinary general meeting will be sent out shortly.
The record date for the distribution, if approved by the meeting, is proposed to be July 1, 2021.