Russian carmaker seeks $1.3 billion
RUSSIA’S biggest carmaker Avtovaz has announced that it is looking to raise some US$1.3 billion as it struggles to battle back from slumping sales amid the economic crisis.
Avtovaz, which is majority-owned by the Renault-Nissan Alliance, said it would “consider a matter of an open subscription for shares” at an extraordinary shareholder meeting on October 10.
“This will become the first key step in the implementation of an overall recapitalisation plan of the company for approximately 85 billion rubles [$1.3 billion],” it said.
A first round of share sales worth 25 billion rubles is to take place in December and Renault has said it is ready to stump up the cash.
Hit hard by Russia’s economic crisis, Avtovaz earlier this year was battling bankruptcy fears after its net losses almost tripled in 2015. –