France's Alstom sells stake in Transmashholding for 75 mln euros

MOSCOW. May 8 (Interfax) - Alstom has sold its 20% stake in JSC Transmashholding (TMH) for 75 million euros, the French concern said in a press release.

Alstom said that the deal was closed in early January 2024. The carrying value was nil owing to a recognized impairment charge.

The company has not specified the buyer, though TMH itself reported on the acquisition of a 20-percent stake in its previously published statement to International Financial Reporting Standards for 2023.

Alstom said that it assessed the potential risks regarding new sanctions restrictions after the U.S. Department of the Treasury had included TMH in the Specially Designated Nationals and Blocked Persons (SDN) List in September 2023.

Transmashholding is Russia's largest developer and manufacturer of modern multi-car railway rolling stock. The company's headquarters are in Moscow, and it has international divisions in Egypt, Belarus, and Kazakhstan. The holding structure includes 12 production and assembly sites in Russia and 30 in other countries worldwide.

TMH CEO Kirill Lipa told Interfax in October that Alstom would leave TMH's shareholder structure, saying that the French company had based its decision on U.S. sanctions. The Russian shareholders, including Lipa, own 100% of Cyprus-based Transmashholding Limited, which controls TMH, after the deal with Alstom. Lipa said that the company could re-domicile in Russia.