Page 78 - RUSRptOct18

MRSK Centre and RUB 0,3 645 0,04 12,2% 0,04 12,2% Medium Volga
MRSK Volga RUB 0,1 383 0,012 10,5% 0,012 10,5% Medium
MRSK Siberia RUB 0,1 194 0,004 3,2% 0,004 3,2% Medium
MRSK South RUB 0,1 48 0,005 9,1% 0,005 9,1% Medium
MRSK Urals RUB 0,2 333 0,02 9,3% 0,02 9,3% Medium
Tomsk Distribution Co RUB 0,3 23 0,021 6,2% 0,021 6,2% Low
Tomsk Distribution Co RUB 0,4 4 0,017 4,8% 0,017 4,8% Medium pref
Kubanenergo RUB 70,6 346 0,928 1,3% 0,928 1,3% Low Source: Bloomberg, ATON Research
8.3.3 ECM news
Russia's largest carmaker Avtovaz will delist its shares and go private, according to the head of state technology agency and Avtovaz shareholder Rostec Sergei Chemezov, as cited by Interfax on September 25. "We are currently finishing [the necessary procedures], sorting out loans, will put forward a mandatory buyout offer to minority shareholders, and will think what to do next," Chemezov said. This confirms previous reports that Rostec and Renault Nissan seek to consolidate 100% in the Avtovaz . In April Avtovaz completed the second stage of a $1bn recapitalization by French car major Renault and Rostec, which brought their joint stake in the company to 83.5%. "The delisting plan is in line with our expectations, although the timeframe remains unclear," VTB Capital commented on September 25. "Alliance Rostec Auto BV [Rostec and Renault joint venture] has yet to announce the results of its voluntary buyout offer to shareholders," VTB wrote, not ruling that Alliance Rostec Auto will accumulate more than 95% of Avtovaz shares as a result of the offer, "which would open the way for a squeeze-out." The mandatory buyout offer is only executable if the shareholders control over 95%. Avtovaz largest minority it Cyprus-registered Renaissance Securities (Renaissance Capital investment bank) that owns 11.5% in Avtovaz. Buying the RenCap stake would thus be necessary to proceed to the buyout.
Russia's second-largest oil company Lukoil has started the first stage of its $3bn share buyback that was announced earlier this year and will run through the end of 2022. At this stage, the company will acquire at least $1bn worth of its shares by the end of 2019. In the past weeks the capitalisation of Russia’s biggest privately owned oil company on Moscow Exchange caught up with such state-controlled heavyweights as Sberbank and Rosneft oil major, despite it having smaller reserves and lower output.
Russian courts confirmed previous decisions that dismissed the claims of minority shareholders of GAZ Group carmaker against its owner, sanctioned Russian billionaire Oleg Deripaska. Since 2016 Lankrenan Investments Limited, Medvezhonok Holdings Limited and Prosperity Capital Management tried to recover RUB14.6bn ($196.5mn) from Deripaska and GAZ head Vadim Sorokin. The plaintiffs suggested that the defendants caused losses by voting to sell shares of the Kazington Limited automobile plant,
78 RUSSIA Country Report October 2018 www.intellinews.com