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Rostec plans to sell 26% stake in Kalashnikov arms producer in early 2018

December 11, 2017, 10:25 UTC+3

The decision is already there, now the government is going to issue a ruling, Rostec's CEO said

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© Stoyan Vasev/TASS

SINGAPORE, December 11. /TASS/. Russian state corporation Rostec plans to sell a 26% stake in the Kalashnikov Corporation early next year, Rostec’s CEO Sergey Chemezov told TASS.

"The decision is already there, now the government is going to issue a ruling. Most likely, this [sale] will be at the beginning of next year, "he said.

Chemezov also said that general director of the Kalashnikov Corporation Alexey Krivoruchko and Transmashholding will buy 26% minus one share in the corporation.

Now, Krivoruchko and Transmachholidng control 49% in Kalashnikov.

"They are owners, they will act as buyers," Chemezov said.

When asked about the future structure of Kalashnikov's capital, Chemezov replied that "Krivoruchko will be the owner."

Earlier this month, the Russian government granted a permit to Rostec to sell a stake in the Kalashnikov Corporation to third parties. The relevant ruling was signed by Prime Minister Dmitry Medvedev on December 2.

The approval of the deal by the Russian government means that the share of private capital in the concern may be increased to 75% minus 1 share, while the state corporation will retain a blocking stake of 25% plus 1 share.

Earlier it was planned that 26% minus one share of the Kalashnikov Corporation would be sold to private shareholders - Andrei Bokarev (president and co-owner of Transmashholding) and Alexei Krivoruchko. But then it became known that Bokarev and Iskander Makhmudov were going to sell their stakes in the company. A source told TASS that Kriviruchko may buy the stakes of Bokarev and Makhmudov.

The Kalashnikov Corporation is Russia’s largest manufacturer of a wide range of small arms. At present 51% of the company's shares belong to the state corporation Rostec.

The company's products are exported to more than 20 countries.

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