The Republic of Tatarstan is set to sell its 37.8 percent stake in Kamaz-Capital to Troika Dialog Group’s subsidiary, Avtoinvest Ltd. Each share was purchased at USD 3.38 to 3.94 per share, giving the transaction an approximate value of USD 300 to 350 million.
Avtoinvest Ltd previously held a controlling 51 percent stake in Kamaz-Capital. Kamaz-Capital owns 33.2 percent of Kamaz, giving Avtoinvest Ltd. indirect ownership of an additional 12.55 percent of the company’s shares. This will make Avtoinvest Ltd. the largest shareholder in Kamaz as well.
The price for the shares is considerably below current market valuations, leading to speculation that the purchase will produce a negative impact on the stock of the Russian truck producer.
Kamaz (www.kamaz.net)
Kamaz is Russia’s largest truck producer headquartered in Naberzhnye Chelny, Tatarstan. The company first began producing trucks in February 1976. Kamaz now exports to a number of countries in Eastern Europe, North Africa, the Middle East and China. It produces 93,600 vehicles per year, each with a V8 engine. Last year, revenue was reported at USD 3 billion, while the company retains 52,000 employees.
Troika Dialog(www.troika.ru)
Founded in 2005 in Moscow, Troika Dialog focuses on investments in established companies.
Retail, consumer and business services, food, healthcare, packaging services and financial logistics and services are its primary markets. With additional investments in the telecommunication and media sectors.
The firm works primarily in Russia and the surrounding region, but has taken interest in Central European companies as well. Its investments range from $30 million to $100 million USD over the course of three to five years.
10/08/2008
Automotive & Aerospace & Nautical, Central & Eastern Europe, Investment, Private Equity News, Russia