February 26, 2024
  • Volvo Vehicles shares fell as a lot as 14% on Friday, hitting a file low.
  • Volvo mother or father firm Zhejiang Geely Holding Group has began promoting round 100 million shares within the Swedish carmaker.

Volvo autos seen outdoors an Edmonton Volvo dealership on October 26, 2023 in Edmonton, Alberta, Canada.

Arthur Widak | Photograph solely | Getty Pictures

Shares of Volvo Vehicles plunged as a lot as 14% on Friday morning after mother or father firm Zhejiang Geely Holding Group started promoting round 100 million shares of the Swedish automaker.

At 9 a.m. London time, Volvo shares fell 10.31% after paring some losses. Shares had fallen as a lot as 14% earlier within the day, hitting a file low, based on Portal information.

Volvo shares have fallen 25% for the reason that begin of the 12 months.

Geely mentioned in a press release earlier Friday that it might launch further shares in Volvo, in keeping with its long-term technique.

It mentioned the transfer was designed to extend Volvo’s liquidity and “present better alternatives to create sustainable long-term worth for institutional and retail traders.”

Geely will proceed to carry 78.7% of Volvo shares after the sale, the assertion mentioned. Geely beforehand owned round 82% of Volvo, placing the shares offered at over 3%.

The holdings had been offered at a major low cost and the sale amounted to round $350 million, based on Portal.

“As a majority shareholder, we stay dedicated to our dedication to additional assist Volvo Vehicles in its transformation right into a pure electrical automotive producer, and we sit up for persevering with this ongoing world success story,” mentioned Daniel Donghui Li, CEO of Geely Holding Group the assertion printed on Friday.

Geely didn’t instantly reply to a CNBC request for remark. A spokesperson for Volvo Vehicles referred CNBC to Geely for remark.

Geely, based by Chinese language enterprise mogul Li Shufu, who continues to be chairman, acquired Volvo Vehicles in 2010. The corporate’s portfolio consists of a lot of world automotive manufacturers comparable to electrical automotive giants Polestar and Good, in addition to Volvo.