Radioelectronic Technologies (KRET) has chosen Ernst & Young consulting firm to audit its business.
The selection of an auditor is an important step as the company prepares for its IPO, which is planned for 2015. KRET is considering placing shares on one of the world's largest trading floors in London or Hong Kong. Furthermore, it is considering the option of placing a listing on the Moscow Exchange.
Four auditors have submitted bids to participate in the tender: KPMG, BDO, PricewaterhouseCoopers and Ernst&Young. The latter, which submitted the lowest bid of RUB 32 million, won the tender.
The contract covers auditing the financial reports of KRET and its subsidiaries from 2012 to 2014 that are prepared in accordance with IFRS. KRET plans to publish its audited accounts for the previous year in the second half of 2013.
KRET hopes to become the first Rostec holding to list its shares on an international stock exchange. According to KRET General Director Nikolay Kolesov, the preparation of reporting according to international standards is an important step in this direction.
Another five holdings plan to hold IPOs in the next five years. These are Russian Electronics, United Engine Corporation, RT-Biotechprom, Shvabe and Russian Helicopters.
Radioelectronic Technologies (KRET) is Russia's largest instrumentation manufacturing center for the defense and civilian industries. It was founded in 2009. It is a part of the Rostec State Corporation. It is engaged in the development and production of electronic warfare equipment (EWE), avionics (electronic systems for aircraft), Identification Friend or Foe (IFF) systems, multipurpose instrumentation, electrical connectors and cable systems, various household appliances and medical devices. The concern includes 95 organizations that are located in 28 federal entities of the Russian Federation. The holding employs 67,000 people. Its products are exported to more than 60 countries.
