Cevian buys 25 million A-shares in Volvo, raises stake to 10.5% of votes

December 2
7:43 AM 2013

Swedish activist fund Cevian Capital AB on Monday said that it had bought 25 million A-shares in AB Volvo. The move has placed Cevian's stake at 10.5% of votes, Reuters said in a report. 

A-share is a type of common stock that often carries more voting rights than a B-share, according to a definition by Investopedia.

Volvo is the world's second biggest truck manufacturer. The Swedish multinational manufacturing company generated a revenue of SEK303.6 billion last year. It had an operating income of SEK17.6 billion during the same period, based on its latest financial report. 

Violet Partners, Cevian's investment vehicle in Volvo, held 6.7% of votes in the truck maker as of the end of September. Violet Partners is the second biggest owner of Volvo next to Industrivarden which holds 20%, the report said. 

The acquisition had raised Cevian's ownership to 68.7 million A-shares and 29.8 million B-shares. These correspond to 4.6% of the share capital in Volvo, Reuters said. A B-share is a common stock oftenly thought of as carrying less voting rights, Investopedia said.

Cevian Capital was founded in 2002 and currently operates from its offices in Sweden, Switzerland and United Kingdom. It invests in private equity markets of Europe with a focus on the Nordic region, according to a profile by Bloomberg.  

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