The board of directors of Russian conglomerate Rostec will consider the sale of a 26 percent stake minus one share in weapons maker Kalashnikov to two private investors, Andrei Bokarev and Alexei Krivoruchko.
Rostec announced Friday that it has agreed to sell off a stake in Kalashnikov as part of an overhaul of the producer of the AK-47 assault rifle.
Rostec would sell 26 per cent to private investors that already owned half of the firm in a move that will reduce the state’s holding in the weapons manufacturer to a blocking stake of just over 25 per cent. However, the deal needs approval from authorities.
“In 2013, the group’s loss amounted to almost 2 billion rubles ($34 million, 31 million euros at current rates),” Rostec head Sergei Chemezov said.
“After a number of significant transformations carried out by the Group, the replacement of management and the acquisition of the share in Kalashnikov by private investors, we jointly helped the company to achieve positive financial results.” Chemezov added.
A public-private partnership is an effective model for the reformation of state manufacturing enterprises, it allows additional investments to be attracted, as well as the required technological and market competences, Rostec head said.
“In the event of a positive decision, Rostec State Corporation will still be the blockholder. This is necessary for maintaining a balance between commercial and public interests," noted Sergey Chumasov, the General Director of Rostec State Corporation.