Swedish truck maker AB Volvo, which had invested in Eicher Motors in 2008, is looking at selling a part of its stake to raise $250 million. According to a Reuters report Volvo might raise the sale up to $300 million by further diluting its stake.
Eicher Motors officials said that the discussion is at a nascent stage, but Volvo might be looking at restructuring its investment portfolio.
However, they said that this stake sale will happen only in the holding company which is Eicher Motors, and not is joint venture for the commercial vehicle business — Volvo-Eicher Commercial Vehicles.
“The JV in the commercial vehicle business, where Vovlo holds 46.5% will not change and is run by a board which has equal representations from both the companies,” officials said.