OREANDA-NEWS. August 07, 2008. AvtoVAZ could relinquish control in the auto component holding established jointly with State Corporation Rostekhnologii thanks to a spin-off of the company's non-core assets, AvtoVAZ President Boris Aleshin said.

He singled out three stages of formation of auto component business. In the first stage, AvtoVAZ performs a valuation of auto component producers and establishes a holding. In the second stage, it may cut its stake to 51%. In the third stage, the car maker could reduce its stake below a controlling interest.

"We have spun off non-core production lines into standalone 100% subsidiaries which are to be appraised and assigned to Auto Component Holding. In the first stage, the holding will certainly be controlled by AvtoVAZ. It is hard to imagine that private shareholders will contribute more assets than the car maker.

However, we do not rule out that private shareholders will increase their stakes and they could be offered up to 49% of shares in the second stage. This will help ease the current burden on AvtoVAZ. We could abandon a controlling interest longer term.

I believe that such scenario is quite likely in the third stage of the holding's development", AvtoVAZ President said.