Chinese authority approves joint venture between the Volvo Group and Dongfeng Motor Group
On January 7, 2014 the National Development and Reform Commission (NDRC) in China gave its approval of the establishment of a joint venture between the Volvo Group and Dongfeng Motor Group Company Limited. Completion is subject to certain conditions including the approval of other Chinese authorities. As previously announced in January 2013, AB Volvo has signed an agreement with the Chinese vehicle manufacturer Dongfeng Motor Group Company Limited (DFG) to acquire 45% of a new subsidiary of DFG, Dongfeng Commercial Vehicles (DFCV), which will include the major part of DFG’s medium- and heavy-duty commercial vehicles business.
Divestiture of Volvo Rents completed
The previously announced divestiture of Volvo Rents was completed on January 31, 2014. The price amounted to USD 1.1 billion, corresponding to SEK 6.9 billion. For further information, please see Note 3 to the Financial Statements.
Volvo Group divests commercial real estate
On March 28, 2014 companies in the Volvo Group signed an agreement to sell commercial real estate to companies jointly owned by Hemfosa Fastigheter AB and AB Sagax, and to companies owned by AB Sagax. The purchase consideration, on a cash and debt free basis, is expected to be approximately SEK 2 billion. On April 15, 2014 the sale was essentially completed. Companies within the Volvo Group completed a transaction where approximately SEK 1.8 billion of the total purchase sum was transferred. The remaining part of the transaction is expected to be completed later during the second quarter of 2014. For further information, please see Note 3 to the Financial Statements.
Annual General Meeting of AB Volvo
The Annual General Meeting of AB Volvo held on April 2, 2014 approved the Board of Directors’ proposal that a dividend of SEK 3.00 per share be paid to the company’s shareholders.
Jean-Baptiste Duzan, Hanne de Mora, Anders Nyrén, Olof Persson, Carl-Henric Svanberg and Lars Westerberg were reelected as members of the AB Volvo Board. Matti Alahuhta, James W. Griffith and Kathryn V. Marinello were elected as new members of the Board. Carl-Henric Svanberg was reelected as Chairman of the Board.
The registered accounting firm PricewaterhouseCoopers AB was reelected as the company’s auditor for a period of four years.
Carl-Olof By, representing AB Industrivärden, Lars Förberg, representing Cevian Capital, Yngve Slyngstad, representing Norges Bank Investment Management, Håkan Sandberg, representing Svenska Handelsbanken, SHB Pension Fund, SHB Employee Fund, SHB Pensionskassa and Oktogonen and the Chairman of the Board were elected members of the Election Committee.
A remuneration policy for senior executives was adopted in accordance with the Board of Directors’ motion.
Moreover, the Meeting adopted the Board of Directors’ motion concerning a long-term, share-based incentive program for a maximum of 300 senior executives in the Volvo Group comprising the years 2014–2016, including transfer of treasury shares to the participants in the program as matching-and performance shares, based on the same principles as the program adopted by the Annual General Meeting held in 2011, however with a certain adjustment of the performance targets.
Detailed information about the events is available at www.volvogroup.com