Rosoboronexport assumed the management of AvtoVAZ in 2005 and pledged to eliminate the plant's cross-ownership structure in an effort to attract cheaper financing. Troika Dialog was assigned the task of drafting a relevant scheme to eliminate the cross-ownership of shares.
"The scheme is almost ready and could be announced within a month," Vedomosti said, referring to a source familiar with AvtoVAZ's plans.
A decision will be made in the coming months, two of AvtoVAZ's top managers confirmed to Vedomosti.
Troika Dialog's main proposal is to convert 66.5% of AvtoVAZ voting shares, currently owned by its subsidiaries, into treasury stocks subject to redemption. AvtoVAZ will not have to spend money on redemption -- its subsidiaries will be either liquidated or integrated into the carmaker, Vedomosti said.
As a result, 66.5% of the shares will be converted into treasuries and redeemed. After that, a 16.8% stake in AvtoVAZ will suffice to control the automaker, Vedomosti said.
The elimination of the cross-ownership structure could fuel investors' interest in the undervalued automaker and enable Rosoboronexport to assume control of AvtoVAZ, Vedomosti said.
