Interros Company to sell 20,61% of Power Machines to German Siemens AG
On January 26, 2006 «Interros» Company and «Siemens» have finalized the deal allowing «Siemens» to purchase 20.61% stake in the «Power Machines» Concern.
As a result of the deal, «Siemens» has increased its stake and will hereafter hold the blocking minority stake (25%+1 share) of the power machine manufacturing company. The deal amounted to $ 93 million.
Thus, the «Interros» has successfully realized its investment strategy, which envisaged attraction to the «Power Machines» Concern of such key strategic investors as a major state-controlled Russian company and a strategic foreign investor. Acquiring of 22.43% stake in «Power Machines» by RAO UES is considered as the first stage of its strategy, whereby the RAO UES views the acquisition in the context of the RF new Energy Policy Guidelines, which are currently being developed.
«Interros» remains a long-term financial investor of the «Power Machines» Concern. Together with its partners of RAO UES and «Siemens», the «Interros» commissions the elaboration of a development strategy for the «Power Machines» Concern, which is to become an integral part of the overall development strategy for the entire power-building industry of Russia.
As for «Siemens», the acquisition of a major block of Russia’s leading power equipment producer fully complies with the company’s long-term development strategy, which foresees further expansion of production in the Eastern Europe.
«We are satisfied with the deal with «Siemens» and believe that the partnership between the German concern and RAO UES will give a new impetus to the development of “Power Machines”, says Sergei Batekhin, Deputy Director General of the «Interros». «We expect «Siemens» to bring both modern technologies of management and investments to update the production basis. UES on its part will ensure long-term pack of orders within the framework of Russia’s new Energy Supply Policy Guidelines, which are under way».