The Renault-Nissan Alliance and state corporation Russian Technologies have agreed to create a joint venture and give the Alliance an indirect majority stake in Avtovaz, Russia's largest car company and maker of the iconic Lada brand. The Renault-Nissan Alliance, Avtovaz, Russian Technologies and Troika Dialog signed the non-binding agreement yesterday in Paris. According to the memorandum, the Renault-Nissan Alliance and Russian Technologies will contribute their respective stakes in Avtovaz to a joint ven
RSSThe 2453 Renault-838 Nissan Alliance and state corporation Russian Technologies have agreed to create a joint venture and give the Alliance an indirect majority stake in Avtovaz, Russia's largest car company and maker of the iconic Lada brand.
The Renault-Nissan Alliance, Avtovaz, Russian Technologies and Troika Dialog signed the non-binding agreement yesterday in Paris. According to the memorandum, the Renault-Nissan Alliance and Russian Technologies will contribute their respective stakes in Avtovaz to a joint venture that will control the automaker.
Renault-Nissan plans to invest about US$750 million, which will give the French-Japanese car group 67.13 per cent of the joint venture in mid-2014. The joint venture will then hold 74.5 per cent of Avtovaz.
Renault, which purchased 25 per cent of Avtovaz in 2008 and then helped the company to pilot an aggressive turnaround, will invest about US$300 million in the joint venture. Nissan, which does not currently own a stake in Avtovaz, will invest about US$450 million. Renault and Nissan will make periodic payments through 2014.
Russian Technologies has agreed to restructure its outstanding loans with Avtovaz with approximately US$238 million proceeds from the anticipated sale of Avtovaz’s non-core assets being used to repay part of Russian Technologies' loans. The remainder of circa US$1.56 billion of interest-free debt is being extended well beyond its current maturity date. This gives Avtogaz a strong balance sheet with no liquidity constraints.
The Renault-Nissan Alliance, Avtovaz, Russian Technologies and Troika Dialog signed the non-binding agreement yesterday in Paris. According to the memorandum, the Renault-Nissan Alliance and Russian Technologies will contribute their respective stakes in Avtovaz to a joint venture that will control the automaker.
Renault-Nissan plans to invest about US$750 million, which will give the French-Japanese car group 67.13 per cent of the joint venture in mid-2014. The joint venture will then hold 74.5 per cent of Avtovaz.
Renault, which purchased 25 per cent of Avtovaz in 2008 and then helped the company to pilot an aggressive turnaround, will invest about US$300 million in the joint venture. Nissan, which does not currently own a stake in Avtovaz, will invest about US$450 million. Renault and Nissan will make periodic payments through 2014.
Russian Technologies has agreed to restructure its outstanding loans with Avtovaz with approximately US$238 million proceeds from the anticipated sale of Avtovaz’s non-core assets being used to repay part of Russian Technologies' loans. The remainder of circa US$1.56 billion of interest-free debt is being extended well beyond its current maturity date. This gives Avtogaz a strong balance sheet with no liquidity constraints.
