Power Machines board approves deal with Voith Hydro Power
MOSCOW. Sept 7 (Interfax) - The board of Power Machines on September 6 approved a deal with Voith Hydro Power GmbH & Co.
The terms of the deal will not be disclosed until it has been completed.
Voith Hydro Power is one of Power Machines' partners. The company in February approved the establishment of a joint venture with 1 million euro charter capital. The company itself is a joint venture between Voith and Siemens. It produces hydro power installations.
Power Machines produces and supplies equipment for hydro power, thermal power and nuclear power plants, as well as combined cycle power plants. Power Machines production facilities are located in Leningrad and Pskov regions, St. Petersburg and Kaluga. Alexei Mordashov's Highstat Ltd., owns 69.92% of the company and Siemens holds 25%.
Siemens will sell its share of the company to Highstat. The deal will be completed after the Federal Antimonopoly Service has granted permission for it. At the same time, Power Machines and Siemens will set up a joint venture in Russia to produce and service large gas turbines. Siemens will own 65% of the venture and Power Machines the other 35%.
Power Machines posted net profit of $138 million in the first half of 2011 and revenue of $866.9 million.