A Polestar Roadster idea electrical automobile throughout the Singapore Motorshow in Singapore, on Thursday, Jan. 11, 2024. The present runs by way of Jan. 14. Photographer: Lionel Ng/Bloomberg through Getty Photographs
Lionel Ng | Bloomberg | Getty Photographs
Shares of Volvo Cars dipped on Friday, after the corporate mentioned it will dilute its stake in electrical automobile maker Polestar by distributing 62.7% of its holdings to its shareholders.
The transfer would “enable Volvo Cars to concentrate its resources on the next phase of its transformation,” the corporate mentioned in a statement on Friday.
The corporate’s inventory traded over 5% decrease at round 10:00 a.m. London time, paring a few of its earlier losses.
If authorized throughout the firm’s annual normal assembly of March 2024, Volvo would retain round 18% of Polestar’s shares.
“As we have significant operational collaborations with Polestar and a financial relationship, it is logical for us to retain influence through a smaller 18.0 percent stake in Polestar,” mentioned Jim Rowan, president and CEO of Volvo Automobiles.
The announcement comes after the corporate mentioned earlier this month that it will stop funding ailing brand Polestar and is contemplating adjusting its holdings within the electrical automobile maker. Rowan on the time mentioned that the adjustments have been a part of a “natural evolution” within the relationship between the automakers.
Volvo Automobiles on Friday mentioned it is majority shareholder, Chinese language automotive firm Geely Holding, “would continue to provide operational and financial support to Polestar.”
Volvo Automobiles didn’t instantly reply to a CNBC request for remark.
