Russia's Renaissance Capital has acquired a 24.1 percent stake in Russian carmaker Avtovaz in a capital increase that also sees Renault tighten its control over the loss-making manufacturer, according to a regulatory filing yesterday.
The investment firm purchased the stake in a 26bn rouble ($426m) share issue, part of a larger recapitalization plan for the loss-making Lada maker, hit by the collapse of Russia's once-booming auto market.
Under the new issue, Renault has also raised its controlling stake in Avtovaz to more than 47 percent from about 37 percent, through the holding company it owns jointly with alliance partner Nissan and Russian state conglomerate Rostec.
Renaissance's 11.25bn rouble investment in the open subscription meant Renault was required to inject less cash than the 25 bn roubles it had pledged as a maximum contribution to keep Avtovaz afloat, a company spokesman said.
"The objective of the open subscription has been achieved," the spokesman said. The Renault-led holding, ARBV, bought 1.65 billion new shares for 14.85bn roubles on the French carmaker's behalf.
