Sistema agrees to acquire Elektrozavod Group
Russia, Moscow: Sistema PJSFC, announces its affiliate LLC Megapolis Invest has entered into agreements to acquire a 64.37 % share in JSC Elektrozavod.
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Russia, Moscow: Sistema PJSFC, announces its affiliate LLC Megapolis Invest has entered into agreements to acquire a 64.37 % share in JSC Elektrozavod.
The company will control 100 % in LLC Elektrokombinat from certain private investors for $0.33 B (RUB24.7 B) (with a net cash position) with the goal of creating Russia’s leading manufacturer of transformer equipment and implementing a real estate development project on land plots located in Moscow owned by Elektrozavod Group.
The transaction is expected to be financed via investments to be provided by Sistema Group and certain third-party partners. The completion of the transaction is anticipated by the end of 2020 subject to satisfaction of certain conditions stipulated in the agreements.
Additional co-investors may be brought in at a later stage for both the transformer business and the real estate development project.
Elektrozavod Group includes transformer equipment production facilities in Moscow and Ufa, maintenance divisions, research and design institutes, an engineering centre and land plots totalling 19 ha near the Elektrozavodskaya metro station in Moscow.
Source: Sistema