Avtovaz’s majority shareholder, Alliance Rostec Auto has filed a package of tender offer documents with the Central Bank of Russia to launch a mandatory tender offer in respect of the Russian automaker’s shares held by minority shareholders.
The main terms of the operation are:
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- Exercise period: from July 3, 2018 to September 10, 2018
- Purchase price of common shares: RUR 12.40
- Purchase price of preferential shares: RUR 12.20
The proposed purchase price of the shares is above the weighted average of the prices and volumes traded during the six months preceding the filing of the offer (RUR12.35 for ordinary shares and RUR12.15 for preferred shares).
This mandatory tender offer follows the closed subscription in favour of ARA BV which was completed in May this year.
Following the operation, ARA BV became the holder of 83.5% of the share capital of Avtovaz, exceeding the threshold of 75% at which, according to Russian regulations, the majority shareholder is required to launch a mandatory tender offer to minority shareholders.
