Volvo Cars to dilute stake in EV maker Polestar
By REUTERS | 23 February 2024![](https://da4dkroembtou.cloudfront.net/wp-content/uploads/2024/02/6752411.jpg)
GOTHENBURG: Volvo Cars said today it plans to distribute 62.7% of its stake worth 9.5 billion crowns (RM4.4bil) in Swedish electric vehicle manufacturer Polestar Automotive Holding to its own shareholders.
After completion of the proposed distribution, Sweden-based Volvo Cars said it will retain an 18% stake in Polestar.
The heavy involvement by Sweden-listed Volvo Cars in Polestar, where it owns around 48% of the shares, has been criticised by analysts who see the stake as a drag on Volvo's resources.
"As we have significant operational collaborations with Polestar and a financial relationship, it is logical for us to retain influence through a smaller 18% stake in Polestar," said president and CEO of Volvo Cars Jim Rowan.
The company said it has a financial relationship with Polestar through an outstanding convertible loan of US$1 billion (RM4.8bil).
China's Zhejiang Geely Holding, which is a majority owner of Volvo Cars, will continue to provide operational and financial support to Polestar.
The stake distribution will be made through a 2:1 share split, followed by an automatic share redemption process, Volvo Cars said.
Tags
Autos Volvo
Reviews
![](https://da4dkroembtou.cloudfront.net/wp-content/uploads/2024/07/2024-Hyundai-Tucson-1-6T-Max-1-300x202.jpg)
7.6
Hyundai Tucson 1.6T Max: Punchy powertrain, roomy, premium c...
![](https://da4dkroembtou.cloudfront.net/wp-content/uploads/2024/07/Royal_Enfield_Shotgun_650_1-300x200.jpeg)
6.4
Royal Enfield Shotgun 650: Aiming at the sweet spot
![](https://da4dkroembtou.cloudfront.net/wp-content/uploads/2024/07/2024-07-16-15_04_16-Window-300x190.jpg)
8.0
Mercedes-Benz S 580 e: Plug in to hybrid luxury
![](https://da4dkroembtou.cloudfront.net/wp-content/uploads/2024/07/Chery_Tiggo_9_A-300x200.jpeg)
Chery Tiggo 9 PHEV: A jaw-dropping juggernaut
![](https://da4dkroembtou.cloudfront.net/wp-content/uploads/2024/07/HD_Street_Glide_1-300x199.jpeg)
8.2
Harley-Davidson Street Glide: Slick and comfortable tourer
![](https://da4dkroembtou.cloudfront.net/wp-content/uploads/2024/07/iPhone_0X3A1416-Custom-300x200.jpg)
8.2
Chery Omoda E5: Premium features, 430km range (WLTP)
![](https://da4dkroembtou.cloudfront.net/wp-content/uploads/2024/07/GWM_Ora_07_1-300x200.jpeg)
GWM Ora 07 Performance: Juiced up and ready to go
![](https://da4dkroembtou.cloudfront.net/wp-content/uploads/2024/07/Triumph_Speed_400_A-300x200.jpeg)
6.8
Triumph Speed 400: Fun and easy on the wallet
Videos
![](https://i.ytimg.com/vi/V4OFuw8vpBc/mqdefault.jpg)
Double take: Electric Porsche Macan RWD and Macan 4S add div...
![](https://i.ytimg.com/vi/EqpdLT8QhmQ/mqdefault.jpg)
New Porsche Panamera blazes record time on Nürburgring
![](https://i.ytimg.com/vi/yXgsalFl7uE/mqdefault.jpg)
Maserati's Exclusive Electric GranCabrio Celebrates 50 Years...
![](https://i.ytimg.com/vi/KYkcy37pD-s/mqdefault.jpg)