- Advertisement -

Related

Swedish Activist Firm Writes History

Powering Hedge Funds

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

Core, Satellite, and Structural Premiums: PensionDanmark’s Approach to Emerging Market Debt

Many institutional investors have gradually internalized mandates once awarded to external managers, seeking tighter cost control, greater transparency, and improved alignment. Emerging market debt...

PIMCO: Similar Yields, Better Risk Profile in European High Yield

The U.S. high yield market has long been regarded as the global benchmark: deeper, more liquid, and broader in sector composition. For many allocators,...

Avoiding the Echo Chamber: Kraft’s Playbook in Tighter High-Yield Market

Delivering strong returns during a market rebound is one thing. Preserving performance momentum once spreads tighten and dispersion fades is another. That was the...

Tidan Deepens Volatility Arbitrage Expertise

Tidan Capital has strengthened its volatility and options arbitrage platform with the appointment of Laurent Keller as Senior Portfolio Manager. The Stockholm-based hedge fund...

Two Brothers, One Model, Ten Years: The Evolution of Othania

Exactly ten years ago, two brothers on the outskirts of Copenhagen set out to build their own asset management firm. Their idea was straightforward...

Rare Valuation Gap Between Small and Large Caps

Over the past five years, Swedish small caps have oscillated between a 10 percent premium and a 10 percent discount relative to large caps,...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -