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Renault Gets All in One Go
AvtoVAZ and Renault have agreed on the deal, whereby the French consortium will buy out 25 percent plus a stock in Russia’s carmaker without waiting for the end of cross-over structure of its property. The deal will amount to between $1.1 billion and $1.2 billion and will probably provide for the nearly 100-percnet premium for AvtoVAZ stocks. One of the reasons of such price is that Renault will have to return to Troika Dialog a half of its stake in AvtoVAZ in summer.
Past Friday, Renault, AvtoVAZ and Troika Dialog (AvtoVAZ holder) finally agreed on the structure of the deal to sell 25 percent plus a stock in AvtoVAZ to the French consortium, said a few sources involved in the talks. The chosen variant is selling to Renault a blocking stake in AvtoVAZ in one go instead of the disposal of 12.8 percent that will widen to the blocking stake after the treasury stocks are redeemed. The deal is to be completed February 29. Renault, AvtoVAZ and Troika Dialog have declined to comment for the record.
The analysts draw attention to the comprehensive nature of preferred scenario. Renault will step up to majority ownership in AvtoVAZ following the redemption of treasury stocks. But the French consortium doesn’t intend to control the car maker. The sources say it will return a half to Troika Dialog in summer once the stake grows to the majority one and Troika will pay nothing for the stocks.
The deal is said to amount to between $1.1 billion and $1.2 billion, which nears the yesterday’s worth of the blocking stake in AvtoVAZ on MICEX ($1.2 billion). According to the sources, the estimate was based not on the market capitalization but rather on the fundamental indicators shown by AvtoVAZ, on the outlook for its market share and on the premium for Renault for the access to Russia’s car market. The market capitalization of AvtoVAZ will go down once its treasury stocks are paid off, one of the sources forecasted.
www.kommersant.com
All the Article in Russian as of Feb. 27, 2008
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