Volkswagen Buys Stake In Scania

Investor AB has signed an agreement with Volkswagen AG on the sale of $37.4 million shares in Scania. Following the transaction, Volkswagen will have 34.0 percent of the votes and 18.7 percent of the capital in Scania. Investor has committed itself to remaining at least a further two years as an owner in Scania, with 15.3 percent of the votes and 9.1 percent of the capital in the company. Volkswagen is not making any offer for the remaining outstanding shares in Scania.

The sale means that Volkswagen comes into and takes a lead ownership responsibility in Scania. The agreement means a stability that gives Scania the possibility of looking forward and continuing to develop as a world-leading manufacturer of heavy commercial vehicles.

The agreement is subject to approval by the boards of Investor AB and Volkswagen AG, which is intended to be given within a week.

"We are very pleased with the possibility of acquiring a major block of shares in Scania," says Dr. Ferdinand Piech, Chairman of the Management Board of Volkswagen. "Volkswagen has made a strategic decision to expand in the area of heavy commercial vehicles, in line with our long-term strategy. Scania is the world's leading brand when it comes to trucks, and we are happy to deepen our commitment to the company, which has been the Swedish importer of Volkswagen for more than 50 years."

Dr. Piech also added that "We look forward to a cooperation with Investor and all other shareholders in the goal of further strengthening Scania's position as a world-leading manufacturer of heavy commercial vehicles."

"In the present situation, It is a considerable advantage for Scania to get a new, stable industrial owner such as Volkswagen," says Scania's President and Chief Executive, Leif Östling. "We have common fundamental values and we have known each other for a long time," he adds.

Scania will continue to be a listed company and will also continue to follow Swedish practice regarding obligations towards shareholders, corporate governance, auditing and disclosure.

Pete Frost