Renault-Nissan, Russian Technologies to sign agreement to create JV Dec 12
MOSCOW. Dec 11 (Interfax) - The Renault-Nissan alliance and Russian state-owned corporation Russian Technologies (Rostechnologii) intend to sign an agreement to create the joint venture Alliance Rostec Auto BV on December 12, the alliance said in a statement.
President and General Director of the Renault-Nissan alliance Carlos Ghosn, General Director of Russian Technologies Sergei Chemezov, Avtovaz President Igor Komarov and Sberbank CIB co-chief Ruben Vardanyan will participate in a press conference after the agreement is signed.
On Tuesday, Avtovaz reported that its board of directors had approved a general agreement on the creation of Alliance Rostec Auto BV.
As reported, the document will be signed in the framework of agreements reached in May 2012. At that time, the parties made plans to sign a final agreement and wrap up the joint venture deal by the end of this year.
In May, Renault-Nissan and Russian Technologies struck an agreement to establish a joint venture aimed at getting a majority stake in Avtovaz. According to this agreement, the companies will hand over their respective stakes in Avtovaz in the form of a contribution to the capital of the joint venture, which will control the Togliatti-based automaker.
Renault-Nissan intends to invest around $750 million in the project and receive over 67% of the joint venture, which will in turn own 74.5% of Avtovaz's shares, by the middle of 2014. This transaction should be finished in 2014. Renault, which acquired 25% of Avtovaz in 2008, is investing around $300 million in the joint venture. Nissan, which currently is not a shareholder in Avtovaz, is investing around $450 million.
Russia's Federal Anti-Monopoly Service (FAS) in September approved a joint request submitted by Renault, Nissan and Russian Technologies to create the joint venture, with conditions.
Avtovaz has charter capital of 11.421 billion rubles divided into 1.822 billion ordinary shares and 461.764 million preferred shares, par value 5 rubles each.
The key shareholders in Avtovaz are Russian Technologies (28.98% of charter capital, or 36.32% of ordinary shares), Renault (25% of charter capital, 25% of ordinary shares) and Cyprus-based Troika Dialog Investments Limited (20.14%, 19.64%).
