Structure of Avtovaz, OAT deal to be determined after due diligence in 3-5 months - source
MOSCOW. April 9 (Interfax) - Rostec, the former state Russian technologies corporation, and Avtovaz will determine the structure of a deal to transfer the assets of United Automobile Technologies (OAT Group) to Avtovaz only after due diligence is carried out, a source close to Rostec told Interfax.
"The structure of the deal has not yet been confirmed. Participants have to carry out due diligence, which will take 3-5 months. After this, a decision will be made," the source said, adding that it is still too early to talk about the deal's setup and parameters.
One option, the source added, is a non-cash deal, under which Avtovaz would transfer Rostec non-interest bearing notes due in 2032.
Avtovaz and OJSC United Industrial Corporation Oboronprom, which is part of Rostec are considering restructuring a number of car part production assets that are part of OAT. The companies have signed a memorandum of understanding.
It was reported earlier that Avtovaz might become the co-owner of several OAT enterprises.
The Tolyatti-based car maker might receive 99% of CJSC Motor-Super, 40% of OJSC Dimitrovgradsky Avtoagregatny Zavod, 25% of Serdobsky Mashinostroitelny Zavod, 20% of OJSC OSVAR, 15% of Rosavtoplast and 10% of Vazinterservice, RBC reported, citing sources close to the deal.
OAT is the largest Russian holding that produces car parts. The company is also Avtovaz's largest supplier with 13 enterprises in five regions of Russia. These companies produce over 4,000 types of car parts.