AvtoVAZ to Consider Holding Additional Issue
OREANDA-NEWS. September 09, 2010. At an EGM due on September 9, AvtoVAZ shareholders are to consider the issue of upsizing the company’s share capital by holding a closed-subscription additional share issue in favor of Renault, Russian Technologies and Troika Dialog.
The issue size was scheduled at 435 173 411 common shares with a par value of RUB 5. The placement price is RUB 40.24 per share. The weighted average price for AvtoVAZ on the MICEX as of September 8 was RUB 24.515 per share.
Therefore, the placement price is 64% higher than the market level. The beneficiaries may pay for the shares either in cash or by setting off AvtoVAZ monetary commitments. As a result, up to 314 775 721 shares should go to Russian Technologies and 103 543 355 to Renault. The size of the issue first stage is RUB 17.47 bn, of which RUB 4.36 bn should be paid by Renault.