Sweden's Folksam buys AP1 stake in Geely's Volvo Cars
Sweden's Folksam has acquired Swedish national pension fund AP1's preference shares in Geely-owned Volvo Car Group, the insurance and savings group said on Friday.
Folksam said in a statement it had bought preference shares, which would be converted to common stock if the carmaker were to go public, for a nominal 750 million Swedish crowns ($84 million), raising the nominal value of its total stake to 1.75 billion Swedish crowns.
Earlier this year, Volvo Cars and its Chinese owner Geely postponed plans to float shares in the Swedish automaker, blaming trade tensions and a downturn in automotive stocks.
Volvo and its parent had been working on an initial public offering, potentially valuing the Gothenburg-based carmaker at $16 billion to $30 billion.
"This investment gives our savings clients a good risk-adjusted return while at the same time they are given the opportunity to increase their ownership in a company with strong connection to Swedish industry," Folksam head of capital management and sustainability Michael Kjeller said.