Volvo 2007 Annual Report Download - page 143
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Please find page 143 of the 2007 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report. Financial information 2007 139
Note 11 Investments in shares and participations
Holdings of shares and participations are specifi ed in AB Volvo’s holding of shares. Changes in holdings of shares and participations are shown
below.
Group companies Non-Group companies
2006 2007 2006 2007
Balance December 31, previous year 40,812 40,419 271 6,400
Acquisitions/New issue of shares/Dividends 491 2,909 5,737 148
Divestments (1,053) (1) – (2,103)
Shareholder contributions 361 342 – –
Write-downs/Participations in partnerships (192) (151) – 24
Revaluation of shares in listed companies – – 392 (204)
Reclassifi cation, Nissan Diesel – 3,493 – (3,493)
Balance, December 31 40,419 47,011 6,400 772
Shares and participations in Group companies
During the fi rst quarter 2007, 2,886 was transferred to N.A.KK, a
wholly-owned newly-formed Japanese company, whose main busi-
ness is to acquire and hold the shares in Nissan Diesel. The parent
company’s holding in Nissan Diesel (19%) with a carrying value of
2,001 was sold to N.A.KK and remaining shares consisting of prefer-
ence shares with a carrying value of 3,493, were reclassifi ed from
shares in non-Group companies to shares in Group companies at the
time Nissan Diesel was consolidated in the balance sheet of the Volvo
Group.
During the year, Ericsson AB’s share in Alviva AB was acquired by
AB Volvo with the amount of 23. Alviva AB was established in 2002
as a joint venture between AB Volvo (51%) and Ericsson AB (49%) in
order to pursue healthcare.
Shareholders’ contributions were made in 2007 with 35 to VNA
Holding Inc and with 307 to Volvo Financial Services AB.
Write-downs were carried out at year-end on the holdings in Volvo
Penta UK Ltd, 16, VFS Servizi Finanziari Spa 22, and Volvo Informa-
tion Technology AB, 113.
2006: During the fi rst quarter of 2006, 491 was transferred to the
newly-formed company Volvo Automotive Finance (China) Ltd for the
Volvo Group’s future customer-fi nancing activities in China.
Shareholders’ contributions were made with 34 to ZAO Volvo Vos-
tok, with 300 to Volvo Information Technology AB and with 27 to Volvo
Italia Spa.
The redemption of preference shares in VNA Holding Inc decreased
the holding by 1,053.
Write-downs were carried out at year-end on the holdings in Volvo
Information Technology AB, 32 and Kommersiella Fordon Europa AB,
160.
Shares and participations in non-Group companies
The participations in the partnerships Blue Chip Jet I HB and Blue
Chip Jet II HB increased during the year by a net of 24.
Blue Chip Jet II HB was capitalized during 2007 with 145. Repay-
ment of 102 was received from Blue Chip Jet I HB.
The revaluation of AB Volvo’s ownership in the listed company
Deutz AG has decreased the value by 204 during 2007.
2006: On March 21 2006, AB Volvo acquired 40 million shares, cor-
responding to 13% of the shares, in the Japanese truck manufacturer
Nissan Diesel from Nissan Motor, with an option on Nissan Motor’s
remaining 6% within four years. The purchase price amounted to
1,505. The holding was reported as an associated company, since
Volvo believed that substantial infl uence existed.
During the third quarter, AB Volvo exercised its option to purchase
an additional 6% of the shares in Nissan Diesel from Nissan Motor for
496. In addition, AB Volvo acquired all 57.5 million preference shares
in Nissan Diesel from Nissan Motor and Japanese banks for a total of
3,493. The purchase price for the preference shares added to the
value and was reported as investments in associated companies. The
preference shares that Volvo acquired could during the period
2008–2014 be converted to shares in installments. After full con-
version, the preference shares would represent 165.5 million shares.
The total purchase consideration for 46.5% of the shares and votes in
Nissan Diesel amounted to 5,494.
During the year, the newly-formed partnership Blue Chip Jet II HB
was capitalized with 148.
Henlys Group Plc was liquidated during 2006.
The revaluation of AB Volvo’s ownership in the listed company
Deutz AG increased the value by 392 during 2006. In addition, the
holding increased by 95 through conversion into shares.