Volvo 1999 Annual Report Download - page 69

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67
Changes in the Volvo Group’s holdings of shares and participations: 1998 1999
Balance sheet, December 31, preceding year 4,583 3,393
Acquisitions and divestments, net (931) 25,550
New issue of shares and shareholders’ contributions 107 199
Share of income in associated companies, after tax 204 253
Dividends (634) (133)
Write-downs (6) (30)
Translation differences 11 (30)
Other 59 11
Balance sheet, December 31 3,393 29,213
service to Volvo’s truck customers along the interstate
network in the U.S., offering preventative maintenance,
spare parts sales, emergency road service and minor
repairs.
VOCS Finance Limited
The holding in VOCS Finance Limited was divested in
conjunction with the sale of Volvo Cars to Ford.
Svevia Fin SPA
The holding in Svevia Fin SPA was divested in conjunction
with the sale of Volvo Cars to Ford..
AutoNova AB
The holding in AutoNova AB was divested in conjunction
with the sale of Volvo Cars to Ford.
Ned Car BV
The holding in Ned Car BV was divested in conjunction
with the sale of Volvo Cars to Ford.
Pharmacia & Upjohn, Inc
During 1998, Volvo divested all of its remaining holding.
The sales proceeds amounted to SEK 6.5 billion and the
book capital gain was SEK 4.5 billion.
Verimation AB
The entire holding, equal to 10% of the share capital and
voting rights was sold in 1998. The sales proceeds
amounted to 12 and the capital gain was 5.
Aviation Lease Finance, ALF
In 1998, Volvo Aero’s subsidiary, The AGES Group, and
BTM Capital’s subsidiary, Engine Lease Finance, ELF,
formed a new company to lease aircraft engines. ELF
owns 46% of the new company, and AGES 44%, while
BTM Capital and Volvo Aero each own 5%. In addition,
BTM Capital acquired a 5% interest in AGES and Volvo
Aero acquired a 5% interest in ELF.
Henlys Group Plc
In August 1998, Volvo acquired 10% of the share capital
and voting rotes in Henlys Group Plc. Henlys is the lead-
ing manufacturer of bus bodies in Great Britain. Volvo
and Henlys jointly own the shares of the Canadian bus
manufacturer Prevost, 51% and 49%, respectively. In
November 1999, Volvo subscribed for new Henlys
shares in an amount equal to approximately 149. In
September 1999, Volvo also concluded an agreement to
issue a convertible debenture loan of approximately SEK
2 billion to Henlys, which was paid out in October 1999.
Deutz AG
In October 1998, a cooperation agreement was signed
between Volvo and the German diesel engine manufac-
turer Deutz AG. Under terms of the agreement Deutz
becomes the main supplier of small and medium-size
diesel engines to Volvo’s trucks, buses, construction
equipment as well as for marine and industrial applica-
tions. Concurrently, Volvo acquired 10.5% of the capital
and votes in Deutz.
ABB Olofström Automation AB
The entire holding, corresponding to 49% of the shares
and votes, was divested in 1998.
EBP Olofström AB
The entire holding, corresponding to 23% of the shares
and votes, was divested in 1998.
Arabian Vehicles and Trucks Industry Ltd
In 1998, Volvo acquired 25% of the voting rights and share
capital in Arabian Vehicles and Trucks in Saudi Arabia.
The company is an assembly plant for Volvo heavy trucks.
OmniNova Technology AB
In March 1997, Volvo Bus Corporation and TWR Group
Ltd., an English engineering company, formed a jointly
owned company to develop production processes for
buses, and to produce certain bus components. Volvo
Bus Corporation owns 35% of the company and TWR
65%; the company’s operations are located in Uddevalla.
Régie Nationale des Usines Renault SA
(Renault SA)
In July 1997, Volvo divested its entire holding in Renault.
The proceeds amounted to 5,934 and Group gain was 783.
Pripps Ringnes AB
In 1997, Volvo sold its holding in Pripps Ringnes. Volvo
received 4,515 from the sale plus 100 in dividends, and
the transaction yielded a capital gain of 3,027 in the
Volvo Group.
SAS Sverige AB
In June 1997, Volvo sold its entire holding in SAS
Sverige AB. The amount of the sale was 319 and the
capital gain was 221.
Fabege AB
In 1997, Volvo divested its entire holding in Fabege AB.
The capital gain was 19.