Bogdan confirms sale of controlling stake in Cherkasy Bus

Bogdan Corporation confirmed the sale of its controlling stake in Cherkasy Bus from the Bogdan Motors (UX: LUAZ UK), without disclosing the deal amount and stake sold, Interfax reported yesterday. The buyer was Easy Life company, affiliated with Prominvestbank, one of Bogdan Corporation’s lenders, according to the media reports. Cherkasy Bus specializes in the assembly of small city Bogdan-branded buses, with a 2010 output of 733 buses. Yegor Samusenko: Though implications of this asset stripping for minorities is contingent on the deal terms, we see deleveraging as the inherent goal behind this corporate action, which should reduce shareholder risk associated with the company’s debt outstanding.