Deutz TCD 5.0 engineVolvo has sold off all of its shares in German engine maker Deutz, according to brief announcements released by the companies.
Volvo says it sold more than 30 million shares to institutional investors for 1.9 billion Swedish Crowns ($225 million).
In June 2012, Volvo increased its shareholding from 6.7 percent to more than 25 percent with the purchase of 22 million shares at a value of approximately $163 million from Same Deutz-Fahr Group (SDF), at just more than $7 per share.
Volvo’s purchase followed a memorandum of understanding between the two companies designed to expand opportunities for the companies to jointly develop next generation medium-duty engines for off-road applications.
Deutz says the sale will not impact its “strong business relationship with AB Volvo, which goes back many years.”
“We will continue to work together closely with Volvo and will remain an important supplier, particularly in the Construction Equipment application segment,” says Frank Hiller, chairman of the Deutz Board of Management. “Following the sale of the investment, we can focus on raising our profile as an independent manufacturer of innovative drive systems.”
Deutz says the sold shares are now in free float and increase the overall liquidity of Deutz shares.
