Reporter Feng Yao.
On January 10, it was reported that Geely Sweden spokesman Stefan Lundin confirmed on the same day that Geely Holdings** was worth more than 7 billion Swedish kronor (about 49.).0.2 billion yuan) Volvo Group**, the shareholding ratio from 82% to 68%。
This is also the first time that Geely has taken a stake in the Volvo Group since it became a shareholder in 2017. After this completion, Geely remains the second largest shareholder of the Volvo Group. "There is no change to Geely's strategic long-term investment in Volvo," Lundin said. ”
A reporter from China ** Daily then checked with Geely Holdings on the matter, but as of press time, the company had not responded.
For the first time in more than 6 years**
It is understood that Geely Holding's relationship with Volvo Group began in December 2017, six years ago. At that time, Geely Holding acquired 88.47 million A shares** and 78.77 million B shares** of Volvo Group (AB Volvo) from Cevian Capital, a European ** company, accounting for 82%。
Under the terms of the agreement, Cevian Capital will transfer its holdings of 88.47 million A shares and 78.77 million B shares of the Volvo Group to Nomura International and Barclays. Nomura International and Barclays** have committed to resell their entire stake in the Volvo Group to Geely Holding upon completion of project approval.
After the completion of the acquisition, Geely Holding will not only hold 82%, and also has 156% voting rights. The acquisition is another important strategic investment by Geely Holding after its acquisition of Volvo Cars, and is one of the largest acquisitions by a Chinese company in Sweden.
It is understood that the Volvo Group acquired this time is the same as the Volvo Cars acquired by Geely Holding seven years ago. In 1927, the Volvo brand was founded in Gothenburg, Sweden. In 1999, the Volvo Group transferred its passenger car business to the Ford Motor Company of the United States. In 2010, Geely acquired the business, which is now known in the market as Volvo Cars.
AB Volvo's automotive products are mainly truck models. At present, the company owns many truck brands such as Volvo Trucks, UD Trucks, Renault Trucks, Volvo Buses, Nova Buses, and Pevo Buses.
Geely Holding said at the time that the purpose of acquiring Volvo Group was to support its future development in the field of commercial vehicles and construction equipment, explore cooperation opportunities in cutting-edge fields such as electrification, autonomous driving, and Internet of Vehicles, and expand the global business for Volvo Group and continuously improve its profitability.
At that time, the Volvo Group also welcomed Geely Holding as a friendly long-term strategic investor that could provide strong professional support to help the Volvo Group achieve its strategic goals.
According to financial data, Volvo Group's net sales in the third quarter of 2023 increased by 15% year-on-year to 132.4 billion kroner (about 92.6 billion yuan). Operating profit for the third quarter was 19 billion crowns (approx. 132.0 billion900 million yuan), which is higher than the analyst consensus of 16.3 billion kroner and significantly higher than the 11.9 billion kroner in the same period last year.
However, the company expects the market to gradually weaken from its highs in 2024 due to a more severe economic backdrop. The company said demand had begun to normalize from its highs, with new orders down 27% in the third quarter of last year.
Last year had ** Volvo Cars
In fact, in November last year, Geely Holding also took a stake in Volvo Cars.
Geely Holding issued a Volvo announcement at that time, a one-time ** about 100 million shares of Volvo Cars, accounting for 34%, accounting for 4% of Geely's shares1%, the converted amount is about 3$500 million (about $2.5.)0.9 billion yuan), Geely Holding's stake was reduced from 82% to 787%。
One-time cash-out3$500 million is a big deal for Geely Holding and Volvo Cars. This ** behavior directly caused Volvo Cars' stock price to close down 1114%, with a maximum drawdown of 14%.
At that time, Geely Holding emphasized that this move would further enhance the value of Volvo Cars and provide more opportunities for institutional and individual investors, so it decided to release a small stake in Volvo Cars as planned to increase its liquidity and create long-term sustainable value.
Geely Holding said that after the completion of the transaction, it will still hold 78 Volvo Cars7% of the shares, and the proceeds from the transaction will be used to support the development of the company's brands.
Looking back at Geely's brands, many brands are still in a state of waiting to be fed. Especially in the context of the high involution of the new energy vehicle market, brands including ZEEKR are in urgent need of "blood transfusion".
On November 10, 2023, ZEEKR publicly submitted an IPO (Initial Public Offering) prospectus to the U.S. ** Exchange Commission (SEC). According to the prospectus, ZEEKR plans to be listed on the New York Stock Exchange, which is "ZK".
The prospectus disclosed that from 2020 to 2022 and the first half of 2023, ZEEKR achieved revenue of about 318.5 billion yuan, 652.8 billion yuan, 3189.9 billion and 212700 million yuan; The net profit for the same period was 10.4 billion yuan, -451.4 billion yuan, -765.5 billion and -387.1 billion yuan. The cumulative net loss in the last two and a half years is 160400 million yuan.
As of the end of June 2023, its cash, cash equivalents and restricted cash totaled 32600 million yuan. Obviously, the cash on ZEEKR's account is difficult to support its high losses year after year.
Edit: Captain's Review: Muyu.