UAC could sell Ilyushin Finance Co stake to investor other than VEB - source
GELENDZHIK. Sept 5 (Interfax) - United Aircraft Corporation (UAC) could sell a 48.4% stake in aircraft leasing company Ilyushin Finance Co to an outside investor and not, as planned, to Vnesheconombank (VEB), a source with knowledge of preparations for the sale told reporters.
A source close to the negotiations on Ilyushin Finance Co's part also confirmed this possibility.
"There are plans to sell UAC's stake in Ilyushin Finance Co before the end of the year," the source said, adding that if previously a sale to VEB was under consideration, now another investor might be chosen because "VEB has a lot of other concerns."
Official representatives of UAC and Ilyushin Finance Co declined to comment.
It was reported in April that the government had approved the sale of 48.4% owned by UAC in Ilyushin Finance Co to VEB. The government order did not name a price, but said the stake ought to be sold for not less than the market price as determined by an independent valuer. However an explanatory note to the instruction said that UAC's shares in Ilyushin Finance Co had not been revalued, and their value was equal to the book value at which they were contributed to the aircraft corporation's charter capital at 8.75 billion rubles, or 66,826 rubles a share, par value 55,599 rubles each.
"The proceeds from the transaction will go towards supporting the Sukhoi SuperJet project, just like the conversion of VEB's debt into this company's equity," VEB chief Vladimir Dmitriyev has said.
Reports have said VEB will buy the 48.8% of Ilyushin Finance Co from UAC for approximately $300 million. An Interfax source has said 100% of Ilyushin is valued at $700 million. The transaction would boost VEB's stake in the leasing company to nearly 70%.
Ilyushin Finance Co leases and sells Russian Tu-204, Tu-214, An-148, An-124 and Il-96 aircraft.
