Truck giant plans to sell its shares

2 Apr, 2008 05:24 / Updated 17 years ago

Russia's largest maker of lorries, KAMAZ, may sell a quarter of its shares for $US 1.25 billion this year to a strategic investor from the European auto sector.

The Reuters News agency lists Germany’s MAN, Sweden’s Scania and Volvo and Italian firm Iveco among potential investors. KAMAZ is also considering a secondary share offering or a merger with Belarussian truck maker MAZ. However, if the sale takes place, KAMAZ would be valued at 10 times its EBITDA (earnings before interest, taxes, depreciation, and amortization) – at $US 5 billion.