Daily analyst comments
Daimler may acquire just 5-6% of Kamaz
21.12.09 10:26
Daimler AG has changed its plans for the acquisition of a share package in Kamaz: it has given up its intention to buy up 15% in the Russian truck maker, and will instead purchase 5-6%. This will not permit Daimler to consolidate a blocking stake in Kamaz, which could negatively affect the level of cooperation between the two companies.
On 18 December 2009, general director of state corporation Russian Technologies and one of the principal shareholders of Russian truck maker Kamaz, Sergei Chemezov, said Daimler AG was in negotiations over the acquisition of a 5-6% share package in Kamaz. The acquisition price will be the same as when Daimler acquired 10% in Kamaz in 2008.
We are neutral about the news. If Daimler raises its share package in Kamaz by just 5-6%, it will not have any notable impact on the two companies’ business relationships. The acquisition price is to be set at USD 3.50 per share. Earlier, Daimler AG was looking to acquire 15% in Kamaz with the aim of raising its holding in the company to a blocking interest. According to some reports, Daimler’s decision to lower the acquisition volume was due to the high transaction price. In our opinion, the German company’s refusal to acquire a blocking stake in Kamaz could impair the companies’ partnership relations.
The fair value of Kamaz is USD 2.15 per share with a 4% downside and a HOLD rating.