Sweden’s AB Volvo said on Friday it had sold its 25 percent stake in German diesel engine maker Deutz AG as the truck maker continued to trim assets outside its core business.
Volvo said in a statement that proceeds from the sale, which was carried out through a bookbuilding process, amounted to 1.9 billion Swedish crowns ($225 million) and would generate a capital gain of about 350 million crowns.
As part of a push to boost profits at the sprawling group, Volvo has been shedding peripheral businesses in recent years. Among them, it sold its external IT operations and a portfolio of properties last year and expects to sell its largely military Governmental Sales unit later this year.
Volvo said the capital gain from the divestment of shares in Deutz would be booked in the third quarter. The truck maker reports second-quarter results on July 19.
Frontpage August 29, 2019