Sweden’s Volvo Group announced it plans to distribute to shareholders all of the roughly 19 billion Swedish kronor ($2.3 billion) it received from the sale of Japan-based UD Trucks to Isuzu Motors.
“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,” said Volvo Group.
“The proposal entails a distribution of SEK 9.50 per share, corresponding to approximately SEK 19 billion.
“The extraordinary general meeting will be held on June 29, 2021.”
AB Volvo chairman Carl-Henric Svanberg said: “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.
“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.”