12 Jul 2010 14:58

Renault, Rostekhnologii, Troika Dialog to sign agreement on Avtovaz on July 15

MOSCOW. July 12 (Interfax) - The three big shareholders in Russian car maker Avtovaz - Renault, Rostekhnologii and Troika Dialog - plan to sign a shareholder agreement on Thursday in Togliatti, Avtovaz said.

The three each own 25% plus one share in Avtovaz.

The signatories include Rostekhnologii Deputy General Director Igor Zavyalov, Renault Senior Vice President Christian Esteve, Troika Dialog Managing Director Sergei Skvortsov and Avtovaz President Igor Komarov.

It was reported earlier that Renault is prepared to contribute 240 million euro in the form of technology and equipment.

"According to preliminary estimates [as the valuation is being completed], Renault is prepared to contributed approximately 240 million euro in technology and equipment. Naturally, we too will make a sufficient contribution," Rostekhnologii chief Sergei Chemezov said at the end of June.

The 240 million euro figure is the preliminary estimate of Renault's participation in a supplementary issue of Avtovaz shares. It will correspond to the property contributed by Rostekhnologii.

Chemezov also said that Rostekhnologii "must sign an agreement with the French before mid-July that will spell out the stakes of each of the participants, who will contribute how much."

An extraordinary shareholders meeting must be called in order to approve the size of the supplementary share issue. "I believe that technically it will be in December-January," he said.

Renault will supply the equipment it is contributing in the first quarter of 2012.

"If they want to contribute more, it could come as equipment or money, although they don't have money right now," Chemezov said when asked if Renault might increase its stake.

Rostekhnologii First Deputy General Director Alexei Aleshin said previously that Renault's stake in Avtovaz might shrink temporarily if the Russian car maker's debt to Rostekhnologii is converted into company shares.

Chemezov said in late May that Rostekhnologii stake in Avtovaz will depend on the contributions made by Renault-Nissan and Troika Dialog.

"That will depend on what Renault-Nissan contributes, what Troika Dialog contributes. Talks with Renault will be completed soon, after which the French company will provide Russia with a schedule for the gradually contribution of resources to Avtovaz," he said.

Before that Chemezov told journalists that Rostekhnologii would increase its stake in Avtovaz by converting it debt owed to Rostekhnologii - currently about 65 billion rubles - into shares. "Renault plans to maintain its stake. We will probably have somewhat more than 40%," he said.

The first stage of the Avtovaz supplementary share issue is expected to begin before the end of summer. The issue volume has not been announced.