Volvo divests holding in Pharmacia & Upjohn

VOLVO DIVESTS HOLDING IN PHARMACIA & UPJOHN As a part of Volvo's strategy to divest non-automotive ownership interests, Volvo today sold half of its holding (9,879,616 shares) in Pharmacia & Upjohn to JP Morgan. The price is USD 42,86 (SEK 334) per share and the total proceeds amount to USD 423,5 M (SEK 3,303 M). JP Morgan has sold these shares to institutional investors mainly in the US and Europe. Volvo realized a capital gain of SEK 2,090 M on the disposal which will be recognized in the second quarter of 1998. Volvo intends to divest its remaining holding in Pharmacia & Upjohn during the second half of this year. To this end, Volvo has entered into a contract with JP Morgan which, during this time period, secures a minimum share price around the current share price and at the same time allows Volvo to partially benefit from a possible price increase. June 2, 1998

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The Volvo Group is one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Group also provides complete solutions for financing and service. The headquarter is located in Gothenburg, Sweden.