Renault announced it will sell its remaining 6.5 percent stake in truckmaker Volvo in order to cut its debt and consolidate its financial stability.
The sale of the block of 138.6 million Series A shares is being made via an accelerated book building, Renault said. Goldman Sachs is the only bookrunner. Series A shares carry more voting rights than the widely held B shares.
“After this transaction is completed, the Renault group will no longer hold any shares in AB Volvo,” Renault said in a statement on Wednesday. According to a source familiar with the matter, the shares are being priced between 91.25 and 93.25 Swedish crowns, for a transaction value of about $1.94 billion (€1.48 billion). That price represents a discount of 2.8-4.8 percent on their Wednesday closing price of 95.90 crowns.
Renault said it would use the money to fund domestic and international investments as well as to reduce automotive net debt, which stood at €818 million ($1.1 billion) as of June 30. Renault has held a stake in Volvo since 2001, when it sold its trucks division to the Swedish company in return for shares. Renault Trucks remain a division of Volvo AB.