By Christina Zander
STOCKHOLM--Swedish truck maker Volvo AB (VOLV-B.SK) said
Wednesday it has sold 1,270,000 shares in Indian automotive
manufacturer Eicher Motors Ltd. (505200.BY) for about 2.5 billion
Swedish kronor ($300.9 million).
Volvo said the sale will have a positive impact on the Volvo's
cash flow after net investments and net financial debt in a
corresponding amount in the first quarter of 2015 and it will also
generate a capital gain of about SEK2.4 billion, which will affect
operating income in the Trucks segment in the first quarter of
2015.
The share disposal won't affect either the ownership or control
of the truck and bus manufacturer, VE Commercial Vehicles in India,
where Volvo will remain as owner, the company said.
VECV has been owned by Eicher Motors Ltd. and the Volvo Group
since 2008 and is the third-largest manufacturer of commercial
vehicles in the Indian market.
India is a key market and the Volvo will continue developing
VECV as part of the its strategy to expand in Asia and in other
emerging markets, Volvo said.
Shares closed Tuesday at SEK96.40.
Write to Christina Zander at christina.zander@wsj.com
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