- Advertisement -
- Advertisement -

Related

Swedish Activist Firm Writes History

Industry Report

- Advertisement -

Stockholm (HedgeNordic) – Swedish activist investment fund Cevian Capital agreed to sell its ownership stake in Swedish truck, construction equipment and boat engine manufacturer Volvo to Chinese car group Zhejiang Geely. The Chinese company, which already owns Swedish carmaker Volvo Cars, will purchase 88.47 million class A shares and 78.77 million class B shares of Volvo, equivalent to 8.2% of the capital and 15.6% of the votes.

While the exact sale price undisclosed, various sources suggest Geely is set to pay Cevian around €3.25 billion for the entire stake. “We have been owners in Volvo for eleven years, and now we are handing the company over to a good owner that thinks long term, is industrial and competent,” Christer Gardell, a co-founder of Cevian Capital, told Swedish business daily magazine Dagens Industri (Di).

In a press release issued by Geely, Gardell also said: “During Cevian Capital’s ownership, Volvo has been transformed into a more competitive and valuable company, through strengthened governance, improved efficiency and increased focus on its core business. This is reflected in structurally improved profitability and a higher market value. We are proud to have played a role in this positive development.”

According to investment bank Nomura, the €3.25 billion sale would make the deal the largest exit by an activist investor. Should the deal go through, the transaction will likely top a multi-billion-euro sale of American Railcar Leasing completed by U.S. activist firm Icahn Enterprises, Carl Icahn’s primary investment vehicle, last year.

Picture © Filipe Matos Frazao Shutterstock.com

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Rising Adoption of Quantitative Investment Strategies Among Nordic Investors

From a high-level perspective, there is a clear trend of increasing adoption of quantitative investment strategies (QIS) among Nordic institutional investors, either through the...

EU Plans Stress Test for Hedge Funds and Non-Bank Firms

European regulators are planning a stress test to identify vulnerabilities beyond the traditional banking sector, focusing on less regulated entities such as hedge funds,...

ALCUR Fonder Continues Hiring Spree

Following two earlier additions this year, ALCUR Fonder continues to expand its portfolio management team at a notable pace. The Stockholm-based hedge fund boutique...

Nordic Private Markets Modernize with Data-Centric Trade Lifecycle Automation

By Anders Stengaard Jensen at Indus Valley Partner: In recent years, asset managers in Nordic countries have accelerated efforts to modernize trade operations, particularly...

Norwegian Hedge Fund Industry Sees Major Boost with New Launch

The Swedish and Danish hedge fund industries remain closely matched in size, with Denmark recently edging ahead of Sweden. While still less than half...

Atlant Funds Hold Up in May Despite Mistimed Market Call

Macroeconomic and market forecasts are notoriously difficult, even for experienced hedge fund managers. What matters more than being right, however, is ensuring that incorrect...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.