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Belarus wants its contribution to Rosbelavto to be 75 percent minus one share of MAZ

 

Belarus wants its contribution to Rosbelavto, the holding company that would control Belarus’ MAZ and Russia’s KamAZ, to be 75 percent minus one share of MAZ, First Deputy Prime Minister Uladzimir Syamashka told reporters in Minsk on Friday.

According to Mr. Syamashka, as a result of a lengthy discussion, the parties eventually agreed that the market value of the Belarusian truck maker was $1.1 billion. “The participants of the negotiation process recognized this valuation as fair,” he said, adding that the market value of KamAZ was estimated at $1.6 billion.

As Mr. Syamashka noted, Rostekhnologii (Russian Technologies) holds a 49.9-percent stake in KamAZ, whereas MAZ is fully owned by the Belarusian government. Belarus initially suggested that Rosbelavto be co-owned on a parity basis.

“As calculations showed, if KamAZ contributes the 49.9-percent stake belonging to the government, MAZ has to contribute 75 percent, but we want to retain 25 percent plus one share to have influence on these processes,” Mr. Syamashka said. “We would thereby reach parity for the parties and decisions would be made by consensus and neither of the parties would feel slighted.”

This is what was proposed to the Russian side and a positive reply was received, Mr. Syamashka said. The president of Belarus also approved this plan “and that is why I think the holding company will be established on these terms,” he noted.

In February 2011, Rostekhnologii proposed a deal whereby KamAZ would hold 100 percent in MAZ, while the Belarusian government would receive a stake in the Russian company in exchange. The Belarusian government said, for its part, that it would like the joint holding company to have 49-percent stakes in both MAZ and KamAZ.

Alyaksandr Lukashenka warned on June 14 that the Belarusian government would not agree to a link-up between MAZ and KamAZ unless Belarus had a 50-percent stake in the holding company. "But a fifty-fifty arrangement does not suit the leadership of that corporation [Rostekhnologii]," Mr. Lukashenka said. "They want a majority stake and say that Belarus is asking too high a price. Okay, if the price is too high, then don't agree [to it]. Let's work today. MAZ trucks are by no means worse than KamAZ trucks and customers are buying them with pleasure, and not only in ex-Soviet countries but also in Russia."

In 2011, Ernst&Young estimated the value of MAZ at only $800 million. Dissatisfied with the estimate, the Belarusian government asked Ernst&Young to "review" its valuation methods and measure the value of MAZ one more time. As a result, the estimated value of the MAZ assets rose to $1,095 million. //BelaPAN