Commercial vehicle major Volvo Group sold around 4.7 per cent stake in Eicher Motors for over ` 1,920 crore.
AB Volvo has divested 12.7 lakh shares, representing approximately 4.7 per cent of Eicher Motors Limited’s equity capital, Eicher Motors Ltd said in a statement dated 4th March.
As a part of the transaction, in addition to acquiring 45.6 per cent of the shareholding of VECV, AB Volvo had also acquired 22.75 lakh shares of EML representing 8.4 per cent of equity capital of the company.
This divestment will have no bearing whatsoever on VE Commercial Vehicles Limited (VECV), which will continue to be governed as an equal partnership venture, the statement adds.
In May 2008 AB Volvo and Eicher Motors Limited (EML) had entered into a joint venture agreement to create VECV.