Rostec may sell another 25% stake in Kalashnikov to private investors

27 December 2016 TASS
The Kalashnikov Concern was registered in August 2013.

Russia’s Rostec State Corporation hopes to sell 25% more stakes in the Kalashnikov Concern, Russia’s largest arms manufacturer, to private investors next year, Rostec CEO, Sergei Chemezov, said.

"Kalashnikov is operating successfully, too. We hope that next year we will sell another 25% stake to the same investors - Andrei Bokarev and Alexei Krivoruchko," he stated.

In the fall of 2013, Rostec’s senior officials decided to transfer 49% of the shares in the Kalashnikov Concern to private investors, Alexei Krivoruchko, who took over as Kalashnikov CEO and Andrei Bokarev, President and co-owner of Transmashholding, one of Russia’s biggest machine building companies. Under this deal, Krivoruchko and Bokarev will invest 2.6 bln rubles ($47 mln) in the company’s development. Rostec will retain the controlling stake in Kalashnikov after the deal is inked.

The Kalashnikov Concern was registered in August 2013, formed through a merger of two enterprises located in the city of Izhevsk (in the Urals) - Izhmash and the Izhevsk Mechanical Plant, which are part of the Rostec corporation. Products manufactured by Kalashnikov are exported to 27 countries, including the US, the UK, Germany, Norway, Italy, Canada and Thailand.

First published by TASS.

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