Allur head Lavrentyev to become new investor in ArcelorMittal Temirtau - Industry Ministry
ASTANA. Dec 8 (Interfax) - Andrey Lavrentyev, chairman of the board of directors and shareholder in automaker Allur, is set to become the new investor for ArcelorMittal Temirtau JSC.
Minister of Industry and Construction Kanat Sharlapayev stated that Lavrentyev would assume control in the next couple of days.
"The Allur Group, led by Andrey Lavrentyev, is the new investor. They will assume ownership within the next one or two days," Sharlapayev said in a government briefing on Friday.
In turn, the Kazakh Ministry of Industry and Construction's press sevice announced the completion of the process of transferring the Kazakh assets of ArcelorMittal to the state.
"The government of Kazakhstan and international company ArcelorMittal successfully completed negotiations on the purchase of all shares of the metallurgical enterprises ArcelorMittal Temirtau JSC and ArcelorMittal Tubular Products Aktau JSC by the Kazakh state private equity fund Qazaqstan Investment Corporation JSC (QIC). (...) The transaction amount was $286 million , which led to a decrease in the value of ArcelorMittal's equity capital of $800 million," the ministry said in the press release.
Under the terms of the agreement, QIC assumed full management and responsibility for the operations of these businesses, which will be rebranded and given new names.
The minister emphasized the importance for ArcelorMittal that the state be the counterparty in this deal. "Considering the substantial discount provided for the sale to the state, it was crucial for ArcelorMittal that Kazakhstan be the counterparty. Through the negotiations, it was established that if the buyer were not the state, the price would have been different. The state assumed the responsibility to negotiate the exit of a major international investor from Kazakhstan," he said.
Lavrentyev, a 44-year-old businessman, is a prominent figure in Kazakhstan, ranking among the most influential according to Forbes. He leads the Allur Group of Companies, the largest automaker in Kazakhstan that consists of the production facilities of Agromashholding, which manufactures agricultural machinery, and SaryarkaAvtoProm. The Group is an official manufacturer and distributor of well-known car brands in Kazakhstan, including Chevrolet, Kia, JAC, and Lada.
Lavrentyev owns 22.38% of Allur shares.