Avtovaz will conduct delisting of company shares, as told by the head of Rostec: Sergei Chemezov to journalists in Moscow on Monday.
“Delisting will happen” – said Chemezov, reminding that the shareholders are currently in the process of recapitalisation of the company. “As you know, we’ll complete everything soon. We’ll deal with the loans, the ones we’ve lent, we’ll reacquire, we will make an obligatory offer to all minority shareholders, we’ll redeem all shares from whoever wishes and will think about what to do next” – Chemezov added.
The ordinary shares of Avtovaz at MICEX have risen from 11.35 rubles to 12.10 per share on 25 September against the background of the news of delisting, according to exchange data.
As told by the senior vice-president of Renault Group and the director of Eurasian region Nicolas Maure during an interview with Interfax at the end of August, the joint venture of Rostec Group of Companies and Renault-Nissan Alliance: Rostec Auto B.V. intends to bring its stake in the capital of Avtovaz to 100%, as a result of the offer and the compulsory repurchase of shares, which will make the delisting of Avtovaz shares possible. Maure has added that the shareholders of Avtovaz will go ahead with the recapitalisation process of the company in accordance with the plan agreed between Renault and Rostec.
Alliance Rostec Auto BV has brought its share in the capital of Avtovaz to 83.53%, as a result of the additional issue of shares of the Russian car manufacturer. 11.22% of the shares is held by the Renaissance Securities Limited of Cyprus. In the meantime, Alliance Rostec Auto BV controlled 88.69% of Avtovaz shares taking the “financial instrument” into account, according to the annual report of Renault.
As announced by Chemezov in April 2018, the shareholders of Avtovaz plan to complete the recapitalisation of the company in October 2018. According to Chemezov, the total cost of the recapitalisation has exceeded 107 billion rubles. Chemezov has added that 61.4 billion rubles worth of Avtovaz debts has been converted into shares, during the second stage of recapitalisation. Rostec and Renault have given up their rights to claim 30.7 billion rubles worth of debts each, in favour of Alliance Rostec Auto BV. In return, the joint venture became a participant in the closed subscription to the new shares of Avtovaz at the same value. As a result, 61.1% of the joint venture belongs to Renault and 38.9% to Rostec.