Report: AvtoVAZ to Quit Moscow Stock Exchange

Russia’s largest carmaker, OAO AvtoVAZ, intends to delist from the Moscow Exchange later this year, sources tell Reuters.

The news service opines that the move, set to follow a secondary share offering, will trim costs for the maker of Lada cars in a domestic car market that has shrunk 51% since 2012.

Reuters' sources don't indicate why AvoVAZ management wants to delist the company. But they say plans to do so began late last year. They add that part of the plan was last December’s 26.1 billion-ruble ($426 million) purchase of a 24.1% stake in the company by Moscow-based investment bank Renaissance Capital.

The investment involved a share issue that also raised Renault SA’s controlling stake in AvtoVAZ to 47% from about 37%. Renault's ownership is through a holding company co-owned by Renault, Nissan Motor Corp. and the state-owned Rostec conglomerate.