AutoVaz expands its capital and Renault takes over 70% of its shareholdings

AutoVaz Lada XCode Concept frontalThe French car manufacturer Renault it takes years betting on the Russian market. To do this, since the Alliance has with Nissan have been taking little by little the control of the local manufacturer AutoVAZ. The signature of Russian, since callera the backdrop of the steel and the automotive industry to become more global has not been able to walk by herself.

Thanks to this fact, the Renault-Nissan Alliance has been able to increase its sales at a good pace in the difficult Russian market. However, Renault has decided that they will bet even more by Russia, and has agreed to recapitalize AutoVaz to change to increase your control over her by more than 70 percent of its shareholder.

Lada NivaThe scrip is encrypted at about 1,200 million euros. However, this operation is carried out by means of a double mechanism. For a part of Renault will contribute 350 million euros as a first payment to expand this capital. On the other hand, in a second action, will increase its shares in the company in exchange for assuming a portion of the debts that you have this with financial partners.

After this process of expansion of capital, AutoVaz will be led by Renault in 72.5 percent, by Nissan at 5.5 per cent, by Rostec in a 11 per cent and the rest by private investors. However, the command will be assumed in their entirety by the French manufacturer.

once you have closed the agreement Alliance Renault-Nissan will be one of the companies that greater weight will be within the automotive industry Russian. If the conglomerate franco japanese knows how to play with guile, his letters and knows how to ride it well the bad situation through the sales of new vehicles in the country, may become a serious rival to the firms consolidated.

Source – AutoVaz