Volvo has received roughly 96% of the shares outstanding at the close of the acceptance period for its offer for Nissan Diesel on 23 March, the truckmaker said.
Since Volvo has received more than two thirds of the shares in Nissan Diesel, a process is now under way to redeem the remaining shares outstanding. Since Nissan Diesel will not be releasing its year-end report for 2006 until 11 May, Volvo has decided to postpone its first quarter interim report until the same date.
When the offer period expired, Volvo had received 294,585,705 shares, corresponding to roughly 96% of the votes and capital in Nissan Diesel, including the 19% of the votes and capital owned by Volvo before the offer was made. In addition, Volvo owns all 57.5m preference shares in Nissan Diesel.
“It is pleasing that we received such a level of acceptance,” said Volvo’s CEO Leif Johansson. “We foresee major mutual benefits for the Volvo Group and Nissan Diesel with this transaction and it is highly satisfying that owners in Nissan Diesel share this view.”
Volvo plans to redeem the remaining shares in Nissan Diesel since the company has received more than the two thirds of the shares and votes required for this in accordance with Japanese law.
In conjunction with Volvo’s decision to acquire the remaining shares in Nissan Diesel, Volvo intends to delist Nissan Diesel from the Tokyo Stock Exchange. Volvo estimates that the remaining shares will be redeemed by about 30 September .
Volvo will pay SEK 7.4bn ($US1.05bn) for the shares now submitted.
Completion of the transaction requires the approval of the anti-trust authorities in the US and South Africa and Volvo has now received approval from the American authorities. Volvo expects to also receive approval in South Africa at the end of May and will not carry out a takeover there until the company has received that. In other respects, Volvo considers that the transaction is complete.
Nissan Diesel will be consolidated in the balance sheet of the Volvo Group as of the first quarter of 2007. Sales and earnings will be reported as of the interim report for the second quarter. Operations within Nissan Diesel will be reported within the trucks segment.
