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Implementation of the Memorandum of Understanding (MoU) of February 2010
Russian Technologies, Daimler AG, the European Bank for Reconstruction and Development (EBRD), Troika Dialog, and Kamaz yesterday jointly announced the successful signing of a deal under which Russian Technologies, Daimler AG, and the EBRD each have increased equity stakes in the Russian heavy-truck manufacturer Kamaz. On February 11, 2010, the strategic partners had signed a memorandum of understanding (MoU) governing the increase of the equity stakes. Its implementation has now led to a further strengthening of the strategic partnership.
Under the terms of the deal, Russian state corporation Russian Technologies acquired a 12.12% stake in Kamaz. Russian Technologies’ share in Kamaz following the deal has increased to 49.9%.
Separately, Daimler AG, acting as a strategic partner, has acquired a 1% stake in Kamaz. The European Bank for Reconstruction and Development (EBRD), in close partnership with Daimler AG, has acquired a stake in Kamaz as a part of the long-term strategic plan agreed with the company’s main shareholders and management.
Sergey Chemezov, General Director at Russian Technologies, said: “This is a landmark deal for Russia’s auto industry: despite current market volatility, the signatories to the strategic partnership signed in December 2008 have agreed to increase their participation in Kamaz, bringing greater amounts of foreign expertise and investment to Russia’s auto industry and providing a timely example of the ongoing internationalization of Russia’s economy.”
Commenting the deal, Andreas Renschler, Daimler Board of Management member responsible for Daimler Trucks and Daimler Buses said: “This deal increasing Daimler’s stake in Kamaz indicates a broadening of our companies’ partnership, greater technological cooperation and a long-term commitment to collaboration. The Russian market remains one of the most promising strategic areas for Daimler and one where we anticipate significant growth over time.”
Alain Pilloux, the EBRD’s Managing Director for Industry, Commerce and Agribusiness, said: “This is an historic chance to show the investment community how one of the Russian industrial giants can partner with a strategic investor to modernise its products, compete internationally, save energy and promote environmental sustainability.”
Sergey Kogogin, General Director of Kamaz, added: “We readily welcome increased stakes of strategic shareholders like Russian Technologies and Daimler together with the EBRD. This kind of gradual, step-by-step attainment of a greater share in the company signals a sincere interest in long-term partnership, a commitment to increased transfer of technology, as well as the desire to develop business and pursue a broader range of joint projects. All of which bodes very well for the future evolution of our business.”
Ruben Vardanian, Chairman of the Board of Directors of Troika Dialog, said: “It’s very gratifying that Russian Technologies, Daimler and EBRD have evolved into such reliable, long-term partners for Kamaz. This deal is the logical progression of the strategic partnership agreed in December 2008, and the fact that the group of strategic partners has agreed to increase its participation demonstrates their strong belief in the Russian auto industry and its future prospects. Troika has been honoured to advise on each stage of this landmark process, and to remain as one of Kamaz’s shareholders in a broader shareholder structure following today’s transactions.”
