Page 104 - RusRPTNov18

9.2.2 Automotive corporate news
Russian carmaker A vtovaz key shareholder, Alliance Rostec Auto BV, a joint venture between Renault and Rostekhnologii, has launched a squeeze-out, according to AvtoVAZ’s disclosure. Earlier, Alliance Rostec Auto BV increased its stake in AvtoVAZ from 83.53% to 96.64% as a result of a tender offer, which allows it to buy out the remaining minority shareholders. Earlier, representatives of the key shareholder also stated that AvtoVAZ would be delisted. The prices are set at RUB 12.40 per ordinary share and RUB 12.20 per preferred share at the time of the squeeze out, which corresponds to the prices paid by Alliance Rostec Auto BV during the latest buyout offer, when the key shareholder increased its stake in AvotVAZ. The record date is set for 30 November 2018 for the squeeze out. In September, the Head of Rostekhnologii, Sergei Chemezov was quoted by Interfax as saying that AvtoVAZ’s shares would be delisted. Bankers believe that the delisting procedures will be implemented shortly after the squeeze-out is completed. The key shareholders have been re-capitalising AvtoVAZ since late 2016. That has resulted in their stake in AvtoVAZ increasing significantly. Bankers approve of the squeeze-out, given the stock’s low liquidity.
Russia's largest carmaker Avtovaz posted an IFRS net profit of RUB5.4bn in January-September 2018, swinging from loss seen for the same period of last year. Company's revenues in nine months of 2018 increased by 23.5% to RUB199bn ($3.1bn), attributed to both growing domestic sales and imports. Avtovaz has been in red since 2012, when it made net profit of RUB29.2bn. The company managed to turn profitable on the operational level in 2017 and made a net profit of RUB609mn in 1Q18 . Avtovaz also improved its debt profile in the reporting period of January-September, cutting the short-term liabilities more than 3-fold to RUB11.9bn and increasing long-term debt by 7.3% to RUB60.7bn. In April 2018 Avtovaz completed the second stage of a $1bn recapitalization by its main shareholders, French car major Renault and Russian state technology agency Rostec. The recapitalisation of Avtovaz has been on agenda since 2016 and its completion marks the support of Renault to Avtovaz throughout the crisis and now counts to see its money's worth on the recovering Russian car market. Avtovaz already was a top car seller in 2017 domestically . Both shareholders converted a total of RUB61.4bn ($1bn) or RUB30.7bn of debt each into shares of Avtovaz, issued in a closed subscription. As a result, the joint venture of Renault and Rostec Alliance Rostec Auto B.V. increased its stake in Avtovaz from 64.6% to 83.5%.
Carmaker GAZ controlled by sanctioned Russian billionaire and Kremlin insider Oleg Deripaska has had its sanctions deadline expanded from October 23 to December 12 2018 by the US Treasury Department (USTD). Similarly, the deadlines were expanded multiple times for Deripaska's En+ and Rusal aluminium major as Deripaska negotiates to have the sanctions lifted or eased . Reportedly Deripaska is actively lobbying for lifting the sanctions on GAZ, with Deputy Prime Minister Dmitri Kozak suggesting that one of the options was selling the carmaker to the Volkswagen car major. This confirms previous reports that Deripaska is considering selling his stake in GAZ Group . Currently 65.56% in GAZ is held by Deripaska’s Russian Machines, with a capitalisation of RUB8bn as of June 1 in Moscow. Previously on the day the sanctions were announced, Deripaska's Ingosstrakh insurer already sold 17.52% in the group.
104 RUSSIA Country Report November 2018 www.intellinews.com