Siemens closes sale of Power Machines stake to Mordashov
MOSCOW. Dec 1 (Interfax) - Siemens has closed the sale of its blocking stake in Power Machines to Alexei Mordashov's Highstat Ltd, the Russian company's core shareholder, an Interfax correspondent reports from the ceremony at which the deal was concluded.
The cost of the deal was not disclosed.
The sale of the 25% + 1 share is part of a deal for Siemens and Power Machines to create a joint venture to produce gas turbines, on which an agreement was also signed on December 1.
The Federal Antimonopoly Service has cleared Highstat to buy 29.731% of Power Machines and consolidate 100% of the company. Siemens told Interfax that the FAS gave clearance for the sale in November.
Siemens will own 65% of the gas turbine joint venture and Power Machines will have 35%. Investment in the project will be EUR275 million.
Highstat now owns 95.3% of Power Machines and is required by law to offer to buy the remaining shareholders out.
The joint venture will be based at LLC Interturbo, which the partners have owned since 1991, and which will be re-named LLC Siemens Gas Turbines Technology. Initially, the joint venture will produce the E and F class 168- and 292-megawatt turbines at existing facilities. A new manufacturing complex will be built by 2014.
Power Machines builds and supplies equipment for hydropower, thermal energy, and nuclear power stations, as well as power stations with combined steam-to-gas cycles. It has production assets in the Leningrad and Pskov regions, in St. Petersburg and Kaluga.
Siemens had turnover of EUR1.3 billion in Russia in the financial year ended September 30 and orders worth EUR 2.6 billion.