AvtoZAZ (ZAZA) Buys 20% Of Fabryka Samochodow Osobowych (FSO, Poland)
1 July 2008
The final agreement was signed with the Polish State Property Ministry at the ?Ukraine-Poland? economic forum. The remaining 80% of the company belongs to Daewoo, but their shares do not provide voting power at AGMs, as they are managed by the Polish government. Nevertheless, the agreement allows AvtoZAZ to create an FSO daughter company and avoid interference from Daewoo. AvtoZAZ has promised not to layoff any of the 2,200 workers from the factory until 2009. UkrAvto owns 81.59% of AvtoZAZ and has repaid USD 180 mln of FSO’s debts. AvtoZAZ is FSO?s main customer, it bought 90% of its output in 2004.
