Rostec to transfer the control over IMZ to private investors

Rostec to transfer the control over IMZ to private investors


Andrey Bokarev will acquire 74.9% of IMZ (Izhevsky Mekhanichesky Zavod) shares owned by Rostec Corporation. The purchase price will be allocated for production modernization and reequipment of manufacturing funds. Rostec will retain controlling interest.

The purchase will be made after corporate approval procedures are fulfilled through additional IMZ shares emission and will have two stages. 51% of shares will pass to private investors the first quarter of 2015, and the rest of the stock will be purchased later. The shares will be acquired by one of the companies controlled by Bokarev.

Recently Rostec has revised the strategy of several holdings. Sporting gun and pistol manufacturer IMZ is a Corporation’s non-core asset. The reequipment requires substantial investments, engineering processes need to be arranged. Market competences and private investor experience will contribute to the plant’s sustainable development. However, Rostec will retain controlling interest.

The total price is to be defined after independent appraisal of IMZ value, 100% of which are owned by Rostec for now.

Andrey Bokarev has vast experience in the industrial production. Transmashholding co-owned by Andrey Bokarev manufactures diesel engines for submarines, mainline and industrial electric locomotives, main line and diesel-locomotive shunters, freight and passenger cars, electric trains and subway cars, car casting, diesel locomotive and marine engines, diesel-electric engines, components for railroad rolling stocks and city railroad transport.

The company’s share in the Russian small arm market is about 50%. The plant produces a whole range of civilian weapons such as smoothbore and rifled hunting weapons, air rifles and pistols, sporting and service weapons, limit-target firearms. The most popular weapons are classical smoothbore hunting weapons, self-loading and air weapons.

The share of exports in the plant’s revenues is over 25%. Key IMZ importers are Germany, Cyprus, the USA.

Today, IMZ is on the verge of unprofitableness. Revenues for 2013 were RUR 3 bln, loss – RUR 182 mln. The company needs to realize a large-scale investment program to drastically change the situation. New investors will help revive the plant.