Shares of truck maker Volvo AB dropped as much as 5.9% in Stockholm on April 19 on news that China’s Zhejiang Geely Holding Group had sold the entirety of its Class B shares, worth about 14.1 billion Swedish kronor ($1.3 billion).
In a statement April 18, Geely said the divestment is “in accordance with its long-term strategy” and that it will remain Volvo’s second-largest investor with 88.5 million A shares.
“Geely Holding’s strategic adjustment and inclusion of AB Volvo in its automotive manufacturing and investment portfolio is part of the group’s risk management and diversified investment strategy,” the company said.
