Belarus’ MAZ Valued at $1.1 Bln in KamAZ JV Deal

MINSK, November 27 (RIA Novosti) – International audit firm Ernst Young has valued state-run Minsk Automobile Plant (MAZ) at $1.1 billion in a joint venture deal with Russian truck giant KamAZ, Ernst Young Managing Partner for Belarus Pavel Lashchenko said on Tuesday.

The valuation broadly coincides with the estimate of the Belarusian government, which valued MAZ at $1.095 billion while media reports gave figures ranging from $800 million to $1.1 billion. KamAZ was valued by the Belarusian side at $1.68 billion.

“The final valuation is $1.1 billion,” Lashchenko said, adding $800 million was the lower limit when the firm started its assessment of the automaker’s value.

Late in September, Russian Technologies state corporation, which holds 49.9 percent in KamAZ, said Ernst Young had estimated MAZ’s value at slightly over $2 billion.

Under the deal, KamAZ and MAZ are expected to merge in a holding company, Rosbelavto, by the end of 2012. The negotiations on the new holding are still underway.

Belarusian First Deputy Prime Minister Vladimir Semashko said in June Belarus intended to contribute 75 percent minus one share of Minsk Automobile Plant to Rosbelavto holding to get 50 percent of the management company while Russia would contribute 49.9 percent of KamAZ shares.

“[The deal] will be profitable for MAZ and KamAZ because it is a case where we can unite to resist any imports especially after Russia’s accession to the World Trade Organization,” Semashko also said.


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