Written by Cláudio Afonso | LinkedIn | X
Volvo Cars announced on Monday that has completed the distribution of 62.7 percent of its shares in Polestar Automotive Holding UK PLC to its shareholders in the form of Swedish Depositary Receipts (SDRs).
Earlier this year, Volvo Cars announced the plan to discontinue funding its Polestar electric sports car brand. In early April, the automaker shared that its has decided on the final terms and timetable for the distribution of its stake in Polestar to Volvo Cars’ shareholders.
The SDRs represent Polestar Class A shares and can be converted into Polestar Class A ADSs, which are listed on Nasdaq New York. Shareholders can convert their SDRs into ADSs for free during the conversion period, which lasts until August 13, 2024.
If SDR holders don’t convert their shares by then, they will be redeemed, and the corresponding Polestar Class A ADSs will be sold on Nasdaq New York. The proceeds will be paid to the SDR holders.
Volvo’s Board of Directors has decided in early April to distribute 62.7 percent of Volvo Cars’ stake in Polestar, and, based on Polestar’s closing price of $1.53 per share at the time, value transfer to Volvo Cars’ shareholders amounts to approximately SEK 10.4 billion, 976,470,976 usd.
“The record date for the share split is April 12, 2024, and the redemption shares will be traded from April 15 to April 30, 2024. Shareholders will get the redemption consideration, SDRs representing Polestar Class A ADSs, around May 13, 2024. They can convert SDRs into Polestar Class A ADSs from May 13 to August 13, 2024,” Volvo stated.
The automaker has recently announced a 27 percent increase in global sales year over year, reaching 65,838 cars in April.
Sales of Volvo’s electrified models, fully electric and plug-in hybrid models, surged by 53 percent compared to last year, reaching a 48 percent of share. Fully electric cars accounted for 26 percent of sales for the month.
Written by Cláudio Afonso | LinkedIn | X
