Rostec State Corporation has bought back 32.3% of AvtoVAZ shares through a buyback option, the company’s president Maxim Sokolov told RBC about this.
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The decision to buy back a block of shares is due to a change in political and economic circumstances. Other details of the agreement are not disclosed.
Until the end of 2021, AvtoVAZ was controlled by the Dutch company Alliance Rostec Auto BV, a joint venture (JV) between Rostec and Renault. The state-owned company owned 32.3%, the French owned 67.7%.
The joint venture was then transferred to Russian jurisdiction, Lada Auto Holding LLC became the owner of the company and the distribution of shares remained the same.
- In April 2022, Renault decided to leave the Russian market and sell its stake in AvtoVAZ. The French company’s stake was acquired by FSUE NAMI, subordinate to the Ministry of Industry and Trade. The agreement also includes an option for Renault to buy back the share within six years.
- In May 2023, Rostec withdrew from AvtoVAZ’s shareholding. The state corporation transferred its stake in the controlling joint venture Lada Auto Holding to FSUE NAMI.
Author:
Karina Pardaeva
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
