Renault Sells Russia Business to State-Backed Entity
- French automaker Renault SA (OTC:RNLSY) has agreed to sell 100% of its shares in Renault Russia to
Moscow City entity and its 67.69% interest in AVTOVAZ to NAMI. - NAMI is a state-backed automotive research and development center.
- The agreement allows Renault to buy back its interest in AVTOVAZ, exercisable at certain times during the next six years.
- As announced in March, the company expects to record a non-cash adjustment charge amounting to the accounting value of the consolidated intangible assets, property, plant and equipment, and goodwill in
Russia in the 1H22 results. As ofDecember 31, 2021 , this value amounted to E2.195 billion. - In addition, Renault confirmed its financial outlook as announced on
March 23, 2022 . - Price Action: RNLSY shares closed higher by 6.30% at
$4.86 on Friday.