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Renault bought 25% stake in AVTOVAZ 10 December 2007
Sergey Chemezov, Head of Russian Technologies, Chairman of the Board of AvtoVAZ, Serguei Skvortsov, President of Troika Capital Partners and Carlos Ghosn, President and CEO of Renault signed an MOU on 8th December in Togliatti, aimed at giving Renault a 25% stake in AvtoVaz as a strategic partner. Renault Chief Financial Officer Thierry Moulonguet declined to reveal a price but said the market value of AvtoVAZ was $5.7 billion and that Renault was paying a 'reasonable multiple' over earnings for its 25 percent stake. This partnership would allow AvtoVAZ and Renault to: - Accelerate the development of AvtoVAZ, renew and expand its vehicle range - Grow the Lada brand while respecting its identity, in order to maintain its leadership - Share technological expertise and know-how Moulonguet also told that the Russian market, on course to overtake Germany's in a few years, was seen at 3.5 million-4 million cars by 2015 against 2.3 million in 2007. There were also GM, Volkswagen and Fiat among possible partners of AvtoVAZ. From November 27 till December 7 AvtoVAZ shares raised 35% to 50 rubles on expectations that partnership with foreign car maker would help to increase cars production and sales. |
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