Boris Aleshin will only say about the new models that there will be one joint design with Renault and several new Lada models.
Photo: Mikhail Razuvaev
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Renault Makes a Run on AvtoVAZ
The French car company Renault has completed the due diligence of AvtoVAZ and documents on the sale of a blocking package in the Russian company to the French will be completed by spring, if Renault has its way. Documents on the sale are expected to be signed within days. The details of the sale are not being made public. A source has stated its sum at more than $1.3 billion. There are said to be various possible ways to proceed. One is for Renault to buy a blocking package at one time from Rosoboronexport and Troika Capital Partners and sign the papers on February 29.
At the end of last year, there were plans to sell Renault no more than 12.8 percent of AvtoVAZ shares at first, and to increase that share to a blocking package in the summer, after the Russian company has simplified its ownership structure. Now, 65 percent of AvtoVAZ shares belong to its subsidiaries.
President of AvtoVAZ Group Boris Aleshin is to fly to Paris tomorrow for financial negotiations with Renault. The companies promise to make their production plan known after the conclusion of the deal, although a detailed plan will be ready only at the end of the year and will include modernization of AvtoVAZ facilities.
The SOK Group has offered to sell Izhavto to AvtoVAZ for $500 million. That offer is good until February 15. Sources say a response will not be ready by the deadline but negotiations will be held on February 19. On that day, a session of the Union of Russian Heavy Industry, headed by chairman of AvtoVAZ and hear of Rostekhnologia Sergey Chemezov, will be held in Udmurtia.
www.kommersant.com
All the Article in Russian as of Feb. 14, 2008
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