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Renault Asks to Buy AvtoVAZ
Renault has filed an application with the Federal Antimonopoly Service to acquire a 25-percent share in AvtoVAZ. The agency may give an affirmative answer today. The structure of the deal has not been determined yet. Renault will either receive a blocking package in the plant or it will buy a 12.8-percent share, which will increase to 25 percent by summer. Troika Capital Partners is the seller of the shares.
An agreement on the sale of the shares will be signed February 29. The first option for the deal, the purchase of 12.8 percent of the plant's stock with a subsequent increase, could take place after the redemption of reacquired stock. (Now 66.5 percent of the shares in the plant belong to its subsidiaries.) The second option is the immediate acquisition of 25 percent of the stock. Observers say the second option is less risky for Renault, because it allows it to obtain a blocking package as soon as the agreement is signed. The value of the deal should be $1.3 billion.
The first option seems to be the more likely, however. Experts say it is also the more transparent. The second option would not give Renault a blocking package immediately in any case because of the complex ownership structure. The main thing, observers say, is to begin designing new models soon.
www.kommersant.com
All the Article in Russian as of Feb. 22, 2008
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