The second largest shareholder in the Volvo Group, Chinese Geely Holding, is now trying to raise capital by taking a loan of 17 billion Danish kroner in its Volvo shares.
The Chinese car group Geely, which owns 78 percent of Volvo Cars, plans to take out a loan of 17 billion Danish kroner to finance its ownership of Volvo shares. Geely Holding also owns 4.4 percent of the capital and 14 percent of the votes in the truck manufacturer Volvo Trucks.
According to Bloomberg, Geely is in dialogue with several banks about a so-called syndicated loan, where several lenders participate in the financing. Geely has previously sold off its Volvo shares. But the Chinese company remains the second largest shareholder in the company.
Bloomberg writes that.
It is not yet known which banks have been asked about and for a loan, but it is expected that several international banks will be involved.
Geely's continued investment in Volvo shares indicates a long-term strategy to maintain significant influence in the Swedish carmaker. The loan allows Geely to maintain its ownership without having to sell additional shares.
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It is worth noting that Geely is not only in power at Volvo but has a broad portfolio of companies that includes both passenger cars and trucks. The company has, among other things, acquired Western brands such as Lotus and Polestar.
However, it is not uncommon for Western brands to have ended up in other people's hands. For example, the Indian Tata Group has owned the JRL group (Jaguar and Land Rover, ed.) since 2008. And MG is today owned by the Chinese SAIC group. Before Saab's final bankruptcy in 2014, the brand was also owned by several different Chinese companies.
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