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Russia's Avtovaz says to announce recap decision on Thursday
October 11, 2016 / 10:16 AM / a year ago

Russia's Avtovaz says to announce recap decision on Thursday

MOSCOW, Oct 11 (Reuters) - Beleaguered Russian carmaker Avtovaz will announce the results of a shareholder vote on its proposed 85 billion rouble (1.2 billion euro) recapitalisation plan after a board meeting on Thursday, a company spokesman told Reuters.

Majority shareholders Renault and its Japanese alliance partner Nissan have already said they back the proposal and the announcement was expected on Monday.

The spokesman gave no reason for the delay but said there were no problems.

The recapitalisation is a bid by shareholders to shore up Avtovaz in the face of tumbling sales and profits following the collapse of Russia’s once-booming car industry.

Renault is to fund the first 25 billion rouble instalment of the overall rights issue and is set to increase its stake in the Lada maker to more than 70 percent. (Reporting by Gleb Stolyarov; Writing by Jack Stubbs; Editing by Alexander Winning)

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