STOCKHOLM (Reuters) – Volvo’s board of directors is proposing to distribute the proceeds from the sale of UD Trucks to shareholders, the Swedish truck manufacturer said late Tuesday.
Volvo said in a statement that the proposal includes a payout of 9.50 kroner per share, equivalent to around 19 billion Swedish kronor ($ 2.3 billion), and that an extraordinary general meeting on June 29 will decide on the proposal would.
“The most important plus points are the earlier than expected announcement (annual general meeting already on 29 a note.
AB Volvo and Japan’s Isuzu Motors entered into a previously announced strategic alliance in April that includes Isuzu’s acquisition of Volvo’s UD trucks for approximately 20 billion crowns.
($ 1 = 8.2689 Swedish crowns)
(Reporting by Anna Ringstrom and Helena Soderpalm; editing by Jason Neely)