The value of Volvo Cars shares fell to an all-time low yesterday, down 14 per cent (closing at -11 per cent), after the main shareholder, Chinese group Geely sold 3.4 per cent of the stake at a steep discount to Thursday’s close: 37 kronor against 40.84. In total, 100 million shares of the Göteborg-based company were sold for $350 million. Geely will retain a 78.7 per cent stake in Volvo Cars, while zero proceeds from the placement went to Volvo. According to Jim Rowan, CEO of the Swedish carmaker, the company will benefit indirectly from the transaction by increasing the free float and improving liquidity in the exchanges.
