Amtel shares go to private investors for $34.2 million

By Liz White, ERJ staff

Moscow-Amtel has sold ten percent of its outstanding shares to more than 20 institutional investors in Europe, Russia and the US, in a private sale managed and underwritten by Troika Dialog.

A total of 450 000 shares in the Russian tyre maker were sold, at $76 each, giving a transaction worth $34.2 million. This implies a current Amtel market capitalisation of $342 million, said a company statement.

“The success of this placement clearly indicates an acceptance of our track record and strategy,” said Amtel president Sudhir Gupta in the statement, adding that the group will “work hard to fulfill the expectations of our new shareholders.” This includes Amtel's specific aim of listing the company in late 2005, he continued.