Volvo Cars announced on Monday the completion of the distribution of 62.7 percent of its shares in Polestar Automotive Holding UK PLC to its shareholders in the form of Swedish Depositary Receipts (SDRs).
Earlier this year, Volvo Cars announced its plan to discontinue funding its Polestar electric sports car brand. In early April, the automaker shared that it had finalized the terms and timetable for the distribution of its stake in Polestar to Volvo Cars’ shareholders.
The SDRs represent Polestar Class A shares and can be converted into Polestar Class A ADSs, listed on Nasdaq New York. Shareholders have the option to convert their SDRs into ADSs for free during the conversion period, which lasts until August 13, 2024.
If SDR holders choose not to convert their shares by the deadline, they will be redeemed, and the corresponding Polestar Class A ADSs will be sold on Nasdaq New York. The proceeds will be paid to the SDR holders.
Volvo’s Board of Directors decided in early April to distribute 62.7 percent of Volvo Cars’ stake in Polestar. Based on Polestar’s closing price of $1.53 per share at the time, the value transfer to Volvo Cars’ shareholders amounts to approximately SEK 10.4 billion ($976,470,976 USD).
“The record date for the share split was April 12, 2024, and the redemption shares were traded from April 15 to April 30, 2024. Shareholders will receive the redemption consideration, SDRs representing Polestar Class A ADSs, around May 13, 2024. They can convert SDRs into Polestar Class A ADSs from May 13 to August 13, 2024,” Volvo stated.
The automaker has also announced a 27 percent increase in global sales year over year, reaching 65,838 cars in April.
Sales of Volvo’s electrified models, including fully electric and plug-in hybrid models, surged by 53 percent compared to last year, accounting for 48 percent of total sales. Fully electric cars made up 26 percent of sales for the month.
