Overblog Suivre ce blog
Editer l'article Administration Créer mon blog
25 septembre 2013 3 25 /09 /septembre /2013 21:40
Kalashnikov Group to sell 49% stake to private investors

25.09.2013 Rostec.ru

 

Rostec will retain a controlling interest

 

Rostec has proposed selling a 49% stake in Kalashnikov Group to private investors. At the same time the state corporation will retain a controlling stake of 51% of shares. Andrei Bokarev, President and Co-owner of Transmashholding, and Aleksey Krivoruchko, CEO of Aeroexpress and a member of the Board of Directors of Transmashholding, have come forward as investors. The deal amounts to RUB 2.5 billion.

 

In accordance with the development strategy for the small arms sector lasting until 2020, which has been developed by Rostec together with the Ministry of Industry and Trade, Kalashnikov Group will be responsible for the full product lifecycle from design to disposal. It will also carry out research and development work to create advanced weapon systems. According to the strategy, revenue from the sale of small arms is anticipated to grow by four times to RUB 24 billion, the production of small arms is predicted to grow three times to 1.9 million units per year, and labor productivity is predicted to grow three times to RUB 2.5 million per person.

To implement Kalashnikov Group's strategy, RUB 3.6 billion will be required, 2.5 billion of which will be raised from the private investors Andrei Bokarev, President and Co-owner of Transmashholding as well as Co-owner of Ural Mining and Metallurgical Company, and Aleksey Krivoruchko, member of the Board of Directors of Transmashholding.

“Public-private partnership is an effective model for reforming Russian industry, and it allows for implementing large-scale projects,” said Sergey Chemezov, CEO of Rostec. “In addition to investments, it is especially important to attract investors who have both market expertise along with a responsible attitude to the purchased assets. Since Kalashnikov Group is a strategic company, the main condition was that the deal needed to be absolutely transparent. The new strategy adopted by the corporation will place Kalashnikov on the path of sustainable development. At the same time the state, as represented by Rostec, will retain a controlling interest in the corporation, which is essential to maintaining a balance of commercial and public interest in the enterprise.”

The corporation plans to issue additional stock in order to complete the deal, so that investors' funds can be invested directly into Kalashnikov’s authorized capital and contribute to the company's development. In accordance with the terms of the deal, the investors will use their own funds and loans to buy 49% ownership of Kalashnikov Group for RUB 2.5 billion. To achieve this goal, the investors will create a joint venture in which investor ownership will be split 50/50. The amount of RUB 2.5 billion will be invested over the first two years, with RUB 1.3 billion to be invested in the authorized capital immediately. These funds will be used, among other things, to pay off debt as well as to pay the corporation’s loans. Rostec has invested RUB 1.2 billion in Kalashnikov Group over the last two years. An independent evaluation of Kalashnikov Group will be completed by the end of October.

"The Russian small arms industry has great potential, but in order to realize it we need significant resources and managerial competence,” noted co-investor Andrei Bokarev. “Our decision to invest in the Kalashnikov Group was primarily due to financial motivations. We already have experience in creating financially successful hi-tech machine-building companies, and we are ready to apply these competencies to the development of Kalashnikov Group.”

The deal to sell a 49% stake to private investors was approved by the Ministry of Industry and Trade, and it has also won the support of Vladimir Putin during his recent meeting with Sergey Chemezov at a presentation by Kalashnikov Group.

Andrei Bokarev and Aleksey Krivoruchko have extensive experience in the arms manufacturing industry. Transmashholding has fulfilled a number of contracts for the Ministry of Defense, including those for the production of "Shilka" self-propelled anti-aircraft weapon systems, tractors, as well as “Thor”, "Buk", and "Tunguska" crawler chassis. The company also manufactures diesel engines for submarines, railway platforms for mobile missile systems and shipping containers for missiles.

In 2010, state-owned Rostec was actively engaged in resolving the problems of NPO Izhmash when the Russian small arms industry was in deep crisis. At that time enterprises faced severe financial difficulties and suffered due to a lack of modern technology. Izhmash had an opaque and cumbersome management system: it consisted of 32 legal entities, some of which were in offshore jurisdictions. It relied on illegal methods for withdrawing funds. The company was on the verge of bankruptcy.

The creation of the Kalashnikov Group was the systematic result of a financial crisis bailout program developed under the leadership of Sergey Chemezov.  In addition to Izhmash, the corporation includes Izhevsk Mechanical Plant, Vyatsko-Polyansky Engineering Plant Molot, Koshkin Automatic Lines Design Bureau and NITI Progress.

 

The Kalashnikov Group is an association of the largest companies in the Russian small arms industry, which are subsidiaries of the Rostec State Corporation. The corporation was founded on the basis of Izhmash, Izhevsk Mechanical Plant, Vyatsko-Polyansky Engineering Plant Molot, Koshkin Automatic Lines Design Bureau (Klimovsk) and NITI Progress (Izhevsk). The corporation is the largest Russian manufacturer of military-grade automatic and sniper weapons as well as guided artillery shells. It also produces a wide range of civilian products, including hunting rifles, sporting rifles, machine tools and tools.

Partager cet article

Repost 0

commentaires

Présentation

  • : RP Defense
  • RP Defense
  • : Web review defence industry - Revue du web industrie de défense - company information - news in France, Europe and elsewhere ...
  • Contact

Recherche

Articles Récents

  • News review for Industry - European Defence Agency
    source European Defence Agency If you want to subscribe to the News Review, or if you want to stop receiving the News review: News4Ind@eda.europa.eu News of the News EDA Study on the Impact of REACH & CLP European Chemical Regulations on the Defence Sector:...
  • Chronique culturelle - 13 Février 2017
    13 février 1960 explosion de la première bombe atomique française 13.02.2017 source JFP 13 février 1692 : massacre du clan Mac Donald dans la Glencoe (Ecosse).Le protestant Guillaume d’Orange ayant mis en fuite le catholique Jacques II, les chefs de clans...
  • Le PGHM et le GAM s’entraînent ensemble au secours en montagne
    Equipement de passage en neige - photo GAM Armée de Terre 07.02.2016 source 27e BIM Le lundi 13 février 2017 se déroulera un entraînement conjoint entre le peloton de gendarmerie de haute montagne (PGHM) et le groupement d’aguerrissement montagne (GAM)...
  • ITW SDBR : général Vincent Desportes, Professeur des Universités associé à Sciences Po Paris, Ancien directeur de l’Ecole de Guerre
    23.01.2017 par Alain Establier - SECURITY DEFENSE Business Review N°164 SDBR : Quel regard portez-vous sur la Défense de la France ? Vincent Desportes* : A l'issue de cette mandature, nous voyons un empilement d'actions réactives, à vocations plus politiciennes...
  • Chronique culturelle 9 Janvier
    Hussards du régiment de Bercheny en 1776 09.01.2017 source JFP 9 janvier 1778 : mort du créateur des régiments de Hussards (Luzancy – près de Meaux). Emigré hongrois et excellent capitaine au service de la France, Ladislas Ignace de Bercheny , obtient...
  • Chronique culturelle 04 Jan.
    Insigne général des Troupes de Forteresse de la Ligne Maginot 04.01.2016 source JFP 4 janvier 1894 : signature de l’alliance franco-russe. Préparée par de nombreuses activités bilatérales dans les années précédentes, une convention militaire secrète est...
  • Chronique culturelle 03 Jan.
    Napoléon en Egypte par Jean-Léon Gérome 03.01.2017 source JFP 3 janvier : Sainte Geneviève, patronne de la gendarmerie. Issue de la noblesse gallo-romaine du IVe siècle, elle convainc les habitants de Lutèce de ne pas livrer leur ville à Attila, roi des...
  • Au Levant, contre Daech avec les Forces Spéciales
    photo Thomas Goisque www.thomasgoisque-photo.com Depuis plus de deux ans, les hommes du C.O.S (Commandement des Opérations Spéciales) sont déployés au Levant et mènent, en toute discrétion, des opérations contre l’Etat islamisque.Au nord de l’Irak, ils...
  • Les blessés en Opérations extérieures ne prennent pas de vacances !
    Source CTSA Pendant la période des fêtes de fin d'années, le nombre de donneurs diminue dangereusement. Le site de Clamart du Centre de transfusion sanguine des armées (CTSA) invite fortement les donneurs des communes proches à profiter des vacances de...
  • Interview SDBR de Gaël-Georges Moullec, Historien
    photo SDBR 20.12.2016 par Alain Establier - « SECURITY DEFENSE Business Review » n°162 SDBR: Comment va la Russie aujourd’hui? Gaël-Georges Moullec * : Il n’y a plus d’ascenseur social dans la Russie d’aujourd’hui, ce qui est un problème moins connu,...

Categories