Alliance Rostec Auto B.V (Renault and Rostec JV) increased its stake in AvtoVAZ from 83.5% to 96.64% by buying shares from minority shareholders through a voluntary offer. The assembled package allows the alliance to conduct a forced buyback of shares and become the sole owner of the largest auto concern in the Russian Federation. Earlier it was reported that the joint venture is considering the possibility of delisting AvtoVAZ shares from the Moscow Stock Exchange.
The Netherlands Alliance Rostec Auto B.V (66.2% from Renault, 33.8% from Rostec) increased its share in AvtoVAZ to 96.64%, the Russian auto concern said. The procedure for the voluntary repurchase of shares from minority shareholders was completed on September 25, 1.5 billion shares of AvtoVAZ (13.1% of the authorized capital) - 1.3 billion ordinary and 128.9 preference shares were purchased. Alliance Rostec Auto B.V previously owned an 83.5% stake in AvtoVAZ, while Renaissance Securities of Cyprus (11.22%) and other minority shareholders included in the Renaissance Capital group belonged to shareholders.
“The increase in the share of Alliance Rostec Auto B. V in the capital of AvtoVAZ is a logical continuation of the recapitalization process, in which the company was cleared of debts amounting to more than 100 billion rubles,” said Sergei Skvortsov, Chairman of the Board of Directors of AvtoVAZ.
AvtoVAZ recapitalization began after the company received a record loss of 74 billion rubles in 2015. In 2016, the main shareholders of the plant - the alliance Renault-Nissan (in September 2017, Nissan left the alliance) and Rostek - decided to conduct a financial recovery of the asset. As part of the first phase in December 2016, AvtoVAZ held an additional issue of 26.1 billion rubles., The shares were bought by Alliance Rostec Auto, Renaissance Securities and other minority shareholders. During the second stage in the spring of 2018, the auto concern converted debt to shares of 61.4 billion rubles into shares, which, through a private subscription, was acquired by Renault and Rosteha. At the same time, Rostekh and Renault assigned to the joint venture the right to claim for AvtoVAZ's debts - 30.7 billion rubles.
The head of Rostech, Sergei Chemezov, said in September that in the future the shareholders plan to delist AvtoVAZ shares from the Moscow stock exchange. “Now we will finish everything, we will deal with loans, <...> we will make a mandatory offer to all minority shareholders, redeem anyone who wants, all the shares, and then we will think what to do next” (quoted by Interfax). According to the legislation, now that Alliance Rostec Auto has collected more than 95% of the shares, the company can conduct a forced buy-out of AvtoVAZ shares from the remaining minority shareholders.