AvtoVAZ Announced Delisting: Shares of the Company Began to Grow
OREANDA-NEWS AvtoVAZ will hold a delisting of the shares from the Moscow Exchange. This was told to journalists by the head of the state Corporation "Rostec" Sergey Chemezov. In April, he called the terms of recapitalization of AvtoVAZ. According to this information, the process of recapitalization of the enterprise is planned to be completed in October this year.
Shares of " AvtoVAZ " at the auction of the Moscow stock exchange rose nearly 4% after reporting the company's intention to delist from the Moscow Exchange.
According to the trading data, the company's securities grew by 3.9% to 12.1 rubles per share.
"The procedure was planned in advance, and it was known to the participants of the stock market. In the case that the proportion of shareholders in the equity of greater than 75%, according to the law on joint-stock companies, the offer needs to be exposed,", the analyst of "ALOR Broker" Alexey Antonov told in May.
In July, a joint venture between Rostec and Renault - the company Alliance Rostec Auto - put up the so - called MTO (Mandatory Tender Offer) - a mandatory offer to AvtoVAZ minority shareholders in connection with the excess of its share in the capital of AvtoVAZ at 75%.
"AvtoVAZ" showed losses during last four years and has a high debt load, majoritarian spent capitalization of the company. The situation has not changed even after the recovery of the Russian car market this year: there was no high interest from market participants in these securities. In this regard, the decision on delisting seems logical – for the company it is only an additional cost. After delisting, the company may reorganize.
Earlier, the head of the state Corporation "Rostec" Sergey Chemezov reported that Alliance Rostec can consolidate up to 100% of the shares of " AvtoVAZ ", if the appropriate conditions. Currently, Alliance Rostec owns 83.5% in AvtoVAZ. In the framework of the recapitalization of the plant cleared of debt worth more than 100 billion rubles. A significant part of the debt was converted into shares of the automaker, which was bought by Alliance Rostec on a closed subscription.