Swedish commercial vehicle major AB Volvo today sold around 4.7 per cent stake in Eicher Motors for $310 million (over Rs 1,920 crore).
“AB Volvo has today divested 12.7 lakh shares, representing approximately 4.7 per cent of Eicher Motors Limited’s equity capital,” a Eicher Motors Ltd Spokesperson said in a statement.
In May 2008, Volvo and Eicher Motors had entered into a joint venture to create VE Commercial Vehicles Ltd (VECV) to modrenise the commercial vehicle industry in India and other developing markets.
At that time, Volvo had acquired an 8.4 per cent stake in the joint venture, which it has reduced to 4.7 per cent, according to a company statement.
The company also said in the statement that this will have no bearing on VECV which will continue to be governed as an equal partnership venture.
“This divestment will have no bearing whatsoever on VE Commercial Vehicles Ltd (VECV), which will continue to be governed as an equal partnership venture,” the statement said.
The shareholding pattern and governance framework of VECV remains unchanged, it added.
“Both the joint venture partners are committed to nurture this further in the exciting period that lies ahead, as the commercial vehicle industry looks to revive after a long period of downturn,” it said.
VECV’s business includes the complete range of Eicher trucks and buses, VE Powertrain, Eicher’s components and engineering design services businesses as well as the sales and distribution business of Volvo trucks within India.
Eicher shares were trading at Rs 16,100 apiece, up 1.31 per cent, on the BSE.