Amtel Sells $34.2 million Shares

Russian tyre manufacturer, Amtel has sold 10 per cent of its stock in a private placement underwritten and distributed solely by Troika Dialog Group. Institutional investors had the opportunity to acquire shares in the week beginning 27 September when investor presentations were conducted by Troika and Amtel in Moscow and London.

Four hundred and fifty thousand shares were placed at a price of $76 dollars per share in a transaction totaling $34.2 million, which, according to the company, implies a current Amtel market capitalization of US $342 million.

Amtel president Sudhir Gupta commented: “The success of this placement clearly indicates an acceptance of our track record and strategy. We will work hard to fulfill the expectations of our new shareholders including our specific intention to list the company in the fall of 2005.”

By the close of business on 5 October, Troika Dialog confirmed that the private placement was fully subscribed and that orders had been received from more than 20 institutional investors located in the Europe, Russia and the United States.

“We are pleased with this transaction, both for our friends at Amtel but also in providing our clients with an opportunity to participate in the rapidly growing consumer products sector,” said Ruben Vardanian, president of Troika Dialog Group. “The appetite demonstrated for Amtel’s shares is a good sign for the future of the company and its shareholders,” Mr Vardanian added. Ruben Vardanian, president of the Troika Dialog Group, was due to join Amtel’s supervisory board on completion of the placement.

Amtel is one of the leading Russian tyre manufacturers, with three tyre factories in Kirov, Krasnoyrask and Voronezh. According to company estimates, Amtel has a 28 per cent share of the Russian market.

Troika Dialog Group is Russia’s oldest investment bank having been founded in 1991.