Rostec plans to sell its shares in Aeroflot and Technodinamika
Russia’s state corporation Rostec is planning to sell its shares in Aeroflot and Technodinamika. Thus, the procedure of agreeing on the sale of Rostec's controlling stake in Technodinamika has already started. It may be a question of selling up to 75% of the corporation's shares in Technodinamika, RNS informs.
“We are talking about selling a controlling stake in Technodinamika to a strategic investor,” Rostec officials stated during the Dubai Airshow 2017. “Now the documents are sent for approval to the relevant federal executive bodies.”
In September 2017, Russian newspaper Vedomosti reported that Rostec’s authority approved the selling of a controlling stake in Technodinamika to a private investor – Dynamica Group. It was estimated that the transaction amount will be worth $252 million.
Dynamica Group produces components for the aerospace and military-industrial complex, aviation simulators, unmanned systems. The company has more than 10 enterprises which provide technical maintenance of aircraft with a total turnover of more than $336 million in 2016.
The Russian holding company Technodinamika has a 51% share of the components market in the Russian aviation industry and manufactures more than 20,000 products which are installed on almost every Russian passenger and cargo aircraft.
As for now, the share of Rostec Corporation in Technodinamika is 94.92%. The Russian Federal Agency for State Property Management owns the remaining 5.08%.
Rostec to sell shares in Aeroflot if price increases
Rostec will also sell its stake in Aeroflot, if its share price rises at least to $3 per share, Tass.Ru news agency informs. The corporation owns 3.6% of Aeroflot's shares.
“Aeroflot sold its shares and after this, the market began to fall, so we will wait until [the share price] rises again to the same level, then we can think about selling,” Rostec CEO Sergei Chemezov told journalists during the Dubai Airshow.
Rostec CEO added that Rostec does not plan a partial sale of Aeroflot's shares and that the corporation is “considering the sale of our entire package at once”.
In September 2017, Aeroflot sold 53.7 million quasi-treasury shares at a price of $3.05 per share. As a result of the transaction, the company's free float increased to 45.2%. The Russian Federal Property Management Agency owns 51.2% of Aeroflot shares. Another 39.6% of shares belong to the institutional investors, 5.6% is owned by individuals, 0.1% belongs to the Aeroflot's management.