March 26, 2018 / 1:58 PM / 7 months ago

BRIEF-AB Volvo to divest Chinese subsidiary

March 26 (Reuters) - Volvo Ab:

* VOLVO GROUP HAS ENTERED INTO AN AGREEMENT TO DIVEST A CHINESE SUBSIDIARY HOLDING SHARES IN INNER MONGOLIA NORTH HAULER JOINT STOCK

* SAYS ‍ENTERED INTO AN AGREEMENT TO DIVEST A CHINESE SUBSIDIARY, WHICH IS HOLDING 25.2% OF SHARES IN CHINESE COMPANY INNER MONGOLIA NORTH HAULER JOINT STOCK CO., LTD (NHL)​

* SAYS ‍DIVESTMENT FOR APPROXIMATELY SEK 0.9 BILLION​

* SAYS ‍DIVESTMENT IS EXPECTED TO GENERATE A CAPITAL GAIN OF APPROXIMATELY SEK 0.7 BILLION, WHICH WILL AFFECT VOLVO GROUP’S OPERATING INCOME WHEN TRANSACTION IS CLOSED​

* SAYS ‍CLOSING OF TRANSACTION IS EXPECTED WITHIN SIX MONTHS​

* SAYS ‍DIVESTMENT WILL IMPACT GROUP’S CASH FLOW AND NET FINANCIAL POSITION POSITIVELY WITH AN AMOUNT OF APPROXIMATELY SEK 0.9 BILLION AT CLOSING​

* SAYS ‍TRANSACTION IS SUBJECT TO REGULATORY APPROVALS AND COULD BE TERMINATED BY EITHER PARTY IF REGULATORY PROCEDURES OR CHANGES IN REGULATORY RULES OR LAWS PRECLUDE PARTIES FROM COMPLETING TRANSACTION​ Source text for Eikon: Further company coverage: (Reporting By Stockholm newsroom)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below