AB Volvo’s Board of Directors has proposed that the proceeds from the sale of UD Trucks are to be distributed to the shareholders in an announcement made 1 June.
An Extraordinary General Meeting for a resolution on the proposal will be convened 29 June.
The proposal entails a distribution of an estimated AUD $2.9 billion received from the sale of UD Trucks to Isuzu Motors to investors.
“The Board believes that the Volvo Group’s improved profitability, resilience in downturns and strong financial position enable a distribution of the proceeds from the sale of UD Trucks to the shareholders,” said AB Volvo’s Chairman Carl-Henric Svanberg.
“Even after the distribution, the Group is financially strong with resources to invest in future technologies and business models that drive the transition to fossil-free transports and a more sustainable society.”
The record date for the distribution, if approved by the Meeting, is proposed to be July 1, 2021.
Voting, in response to social distancing requirements, will be carried out only through postal voting pursuant to temporary legislation under COVID-19 regulations.
“No meeting with the possibility to attend in person or to be represented by a proxy will take place,” Volvo said in a statement.