Volvo Group to divest commercial real estate

Companies in the Volvo Group have signed an agreement to sell commercial real estate to companies jointly owned by Hemfosa Fastigheter AB and AB Sagax, and to companies owned by AB Sagax. The purchase consideration, on a cash and debt free basis, is expected to be approximately SEK 2 bn. At the time of completion of the transaction, net financial debt in the Volvo Group’s Industrial Operation is expected to be reduced by approximately SEK 1.9 bn. The transaction is expected to have a positive impact on the Group’s operating income of approximately SEK 900 M in the second quarter of 2014. Completion of the transaction is subject to approval from the Swedish Competition Authority.