21 Apr 2010 16:51

Rostechnologies still looking to up stake in KamAZ to controlling, seeks funds

MOSCOW. April 21 (Interfax) - State corporation Rostechnologies still intends to boost its stake in truck-builder KamAZ to controlling, and is currently seeking the funding to complete the deal, Rostechnologies General Director Sergei Chemezov told reporters.

"Yes, we're looking at that variant, no decision has been made yet, because we are looking for the money," Chemezov said. Rostechnologies will take out a credit to buy KamAZ shares, he said, but he did not say what banks the state corporation was talking with.

Last February, Chemezov announced the existence of an agreement with the main KamAZ shareholders - Rostechnologies and Daimler - that neither of them could hold a controlling stake. This agreement, as Chemezov explained, did not allow the state corporation to buy the 12% of shares needed for control (Rostechnologies now has a little less than 38%).

Prime Minster Vladimir Putin said then he was not excluding the possibility that in "the near future" Rostechnologies might "strengthen its position in the company KamAZ."

Daimler has preemptive rights to acquire KamAZ stock. Troika Dialog said back in December that from a pricing perspective it was prepared to sell Daimler a small amount of KamAZ shares.

Daimler, jointly with the European Bank for Reconstruction and Development (EBRD), increased its stake in KamAZ to 15% (from 10%) early this past February. Rostechnologies holds 37.8% of the KamAZ stock and a consortium headed by Troika Dialog controls 39.4%.