AvtoVAZ’s Board of Directors announces plans to recapitalize the company


TOGLIATTI, Russia -- OAO AvtzoVAZ’s Board of Directors announced that on the 10th of October, the Extraordinary General Shareholders’ Meeting will consider a matter of an open subscription for shares. This will become the first key step in the implementation of an overall recapitalization plan of the company for approximately RUB 85 billion (subject to further approvals of AvtoVAZ’s Board of Directors and shareholders), which will allow AvtoVAZ to finance its future expansion plans as well as meet its financial commitments. If approved by the shareholders, the open subscription will take place in December 2016. It is expected that the open subscription will result in an approximately RUB 25 billion capital increase. Alliance Rostec Auto, a joint venture between Renault-Nissan Alliance and Rostec, has already confirmed its intention to participate in this recapitalization.

This news was taken from the latest issue of the Ceauto Newsletter. You can find more information about the Newsletter HERE

AvtoVAZ will receive a capital injection to finance its future expansion plans