Rus­sian car­maker seeks $1.3 bil­lion

The Myanmar Times - - International Business -

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. –

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