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The owners of AVTOVAZ plan to delist the company on the redemption of shares will take at least 26 billion RUB Their plan involves the active participation of the investment Bank “Renaissance Capital”, Reuters reported, citing sources
Renault-Nissan and state Corporation “rostec”, which in Alliance Rostec Auto BV own about 65% of AVTOVAZ is considering the possibility of delisting the company this year, reports Reuters citing two sources close to shareholders of the automaker.
The transaction assumes an active participation of the group “Renaissance Capital”, “daughter” which Renaissance Securities has entered into number of shareholders of AVTOVAZ after the first stage of the additional issue, held in late 2016, buying of 24.09%. Exactly how the group will participate in the further transaction, sources to Reuters did not specify. Now, the joint venture Renault-Nissan Alliance and “Rosteh” belongs to 64.6 per cent, and other holders of securities — of 11.31%.
According to the analyst of “ALOR Broker” Kirill Yakovenko, free float of AVTOVAZ’s ordinary shares now stands at about 19%. After the planned second stage of additional share issue at current quotations, the capitalization of the company should make about 140 billion rubles. “If to assume that will be purchased the entire free float, at current valuations it will take at least 26 billion rubles, and this is not to say that the process of redemption price does not go up and will not require large funds,” — says Yakovenko.
The shareholders of the company, according to Reuters, may declare a mandatory offer to minority shareholders and delist the company after the second stage of the additional issue at RUB 95.3 billion, which will last until July 2017. All by private subscription, the automaker needs to place a 9.25 billion shares. A potential purchaser of stock called Alliance Rostec Auto BV. Representatives of AVTOVAZ, “Rostec”, “Renaissance Capital” and Renault declined to comment on RBC’s future plans.
On 27 Mar, 16:45 GMT, the weighted average share price amounted to RUB 10,21, and the capitalization of the company 51,041 billion.
According to the head of the Department analyses the markets “Opening Broker” Konstantin Bushuev, if after the second stage of the additional issue of AVTOVAZ will conduct a delisting, this would adversely affect the position of its shares on the stock exchange. The analyst of “VTB Capital” Vladimir Bespalov suggests that before the delisting will be held voluntary and later compulsory purchase of the shares. “Shares will be able to implement the voluntary or compulsory redemption at a price similar to the current market.
As suggested by the analyst of the company “Finam” Alexey Kalachev, after the second stage of the additional issue the share of Alliance Rostec Auto BV can grow from 64.6 to 86.9%, while the share of Renaissance Securities could be reduced from 24.09 to 8.7%. “It will be distributed share within the Alliance, is unclear,” he added, noting that Nissan is unlikely to significantly participate in the additional issue, and Renault — “almost certainly”. According to estimates Yakovenko, the share of the JV will be 80.38%, and the share of “daughters” of “Renaissance Capital” will be reduced to 15.6%. “The result of the additional issue will be the increase in shares of Alliance Rostec Auto BV and proportional reduction of the share of minority shareholders and the second shareholder of Renaissance Securities,” he concludes
Representatives of AVTOVAZ, “Renaissance Capital” and “Rostec” and refrained from comments concerning changes in the share after the second stage of the additional issue. As suggested by Bespalov, “Renaissance Capital” subsequently may resell its stake in AVTOVAZ, the joint venture of Rostec and Renault-Nissan.