Volvo 1997 Annual Report Download - page 71

1993
69
History
On May 11, 1915, the AB Delmar & Co. Patentbyrå, on behalf of Aktiebolaget
Volvo, submitted an application to register the “Volvo” trademark. Eleven years
later, on August 10, 1926, SKF subscribed a share capital amounting to SEK
200,000, represented by 2,000 shares. In 1935, when Volvo’s shares were listed
on the Stockholm Stock Exchange, the share capital had increased to SEK 13 M,
and the number of shares to 260,000.
At year-end 1997 the share capital of AB Volvo amounted to SEK 2,649 M,
represented by 441,520,885 shares, each with a par value of SEK 6. The share
capital is divided into Series A shares with one vote each and Series B shares
with one tenth of a vote each. There are 168,896,539 voting rights, distributed
among approximately 226,000 shareholders. The 50 largest shareholders
account for more than 80% of both the voting rights and share capital.
Volvo shares in 1997
1997 as a whole was a favorable stock market year. The Stockholm Stock
Exchange General Index rose by 24%, and the Dow Jones (Industrial Average)
index in New York by 23%.
The market price of Volvo Series B shares was SEK 150.50 at the beginning of
1997, and SEK 213 at the close of the year – an increase in value of 42%.
Volvo’s market value at December 31, 1997 was SEK 94 billion, equal to 4.3%
(4.1) of the total market value of all companies listed on the Stockholm Stock
Exchange. The highest price paid for Series B shares during the year was SEK
232.50, on October 8 and the lowest price, SEK 148 was paid January 2.
The shares are traded in lots of 100. There is also trading in Volvo put and call
options, futures and stock loans on the Stockholm options exchange (O M
Stockholm AB). During 1997, 864,264 call options, 415,281 put options, 7,750
futures and 220 stock loans were traded. Approximately 129 million Volvo shares
were involved in some form of derivative trading.
Turnover
The Stockholm Stock Exchange accounts for the largest part of the turnover in
Volvo shares, with an average of 1.6 million shares being traded per trading day.
Apart from the Stockholm Exchange, most of the trading takes place in London
and on NASDAQ. Trading on the NASDAQ electronic exchange declined by 43%
during the year and the number of outstanding American Depositary Receipts
(ADRs – certificates representing Series B shares) decreased by 46%, to 16.9
million. Holdings of Volvo shares by foreign investors declined from 42% of the
share capital (26% of the voting rights) to 35% (19) in 1997. During the year
Volvo and Renault SA sold their remaining holdings of each other’s shares.
Dividend and share redem ption program
The Board of Directors and the President propose that shareholders at the
General Meeting approve payment of a dividend of SEK 5.00 per share corre-
sponding to a total of SEK 2,208 M, for the 1997 fiscal year. The dividend paid
on 1996 operations amounted to SEK 4.30 per share, or a total of SEK 1,993 M.
With a view of reducing shareholders’ equity in the Volvo Group and the number
of AB Volvo shares, shareholders at Volvo’s Annual General Meeting on April
23, 1997 approved a share redemption offer to AB Volvo’s shareholders. Twenty
redemption rights (one redemption right per Volvo share held) entitled the
holder to redeem one Volvo share. A total of SEK 5.8 billion was paid to the
shareholders. (See “Redemption of shares,” page 13.)
Shareholder
inform ation