Volkswagen to become 68.6% voting shareholder in Scania

Volkswagen AG has reached an agreement with Investor AB and the Wallenberg Foundations regarding the purchase of their stakes in Scania for 200 SEK per A-share in cash. The stake will increase VW¡¯s total votes in Scania to 68.60% (previously 37.98%) which corresponds to 37.73% of the capital (previously 20.89%). This move is, said VW, ¡°an important step towards clarifying the long-term shareholder structure of Scania¡±, which was put in question by a hostile bid last year from MAN Nutzfahrzeuge, in which VW is also a major shareholder.
 
Volkswagen AG has reached an agreement with Investor AB and the Wallenberg Foundations regarding the purchase of their stakes in Scania for 200 SEK per A-share in cash. The stake will increase VW¡¯s total votes in Scania to 68.60% (previously 37.98%) which corresponds to 37.73% of the capital (previously 20.89%). This move is, said VW, ¡°an important step towards clarifying the long-term shareholder structure of Scania¡±, which was put in question by a hostile bid last year from MAN Nutzfahrzeuge, in which VW is also a major shareholder.
 
The completion of the purchase is subject to merger clearance.
 
Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen AG said: ¡°This step underlines the importance Volkswagen attaches to its participation in Scania. Scania is a strong premium brand which has a prosperous future. We will support the management of Scania and its team in executing the strategy of profitable growth. Investor and Volkswagen have worked successfully together for eight years and during this time Scania has achieved record sales and profit. Both parties believe that this transaction is in the best interest of Scania and Sweden.¡±
 
Volkswagen says it will keep and develop Scania as a strong premium brand and will exercise its influence in the company with the objective of maximizing the long-term value for all shareholders. Volkswagen does not foresee any further structural changes that would affect adversely the employees of the company. The continuity of Scania¡¯s management team has always been a key priority for Volkswagen. Volkswagen intends to maintain the headquarters and the engineering competence centres in Södertälje.
 
VW¡¯s release yesterday did not mention MAN, which is due to hold its annual report press conference on Wednesday 5th March. VW has indicated it wished to arrange an amicable three-way arrangement between MAN, Scania, and its own, largely Brazilian-based medium weight truck manufacturing business.
 
Porsche¡¯s holding company¡¯s supervisory board yesterday voted to approve in principle the acquisition of a majority stake in Volkswagen, though without any further indication being given as to when the bid may be made. Reviews by regulatory authorities are expected to take several months, but ¡°as soon as the requisite clearances have been obtained, Porsche can acquire the majority of the shares in Volkswagen," Porsche¡¯s holding company said in a statement issued yesterday.
From: auto industry.uk/news

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