Asia Tech Wire (Feb 23) -- Geely-owned Swedish automaker Volvo Cars plans to reduce its stake in premium electric car brand Polestar to 18%.

Volvo Cars said in a statement Friday that it plans to transfer about 9.5 billion Swedish kronor ($921 million) worth of shares in Sweden-based electric car maker Polestar Automotive Holding UK PLC (NASDAQ:PSNY) to shareholders.

Volvo currently holds a nearly 48% stake in Polestar, public information shows. And it will retain an 18% stake in the EV brand after closing the proposed share distribution.

The share transfer is subject to shareholder approval at Volvo Car's annual general meeting next month.