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Saturday, September 1, 2007

Rotorcraft Report: Russian Consolidation Advances With Majority Stake in Mil

BUSINESS

Oboronprom, the state-controlled company at the heart of the government-led consolidation of Russia’s helicopter industry, has taken majority ownership of the Mil Moscow Helicopter Plant.

The subsidiary of Rosoboronexport, the state arms-trading monopoly, acquired 25.07 percent of the Mil plant from Russian Abilis Holdings. Oboronprom already owned 36.35 percent of the Mil plant. No purchase price was disclosed.

The rest of Mil’s shares reportedly are divided among the U.S. company Sikorsky International Operations, holding 9.39 percent; the Russian companies Energia and Pentapol, holding 5.58 and 5.11 percent, respectively, and more than 4,600 private shareholders

Oboronprom already controls the Ulan-Ude aviation plant, Vperyod Moscow machine plant and Stupino machine company. By the end of this year, it plans to have accumulated controlling stakes in two other Russian helicopter producers: Kazan and Kamov.

It currently reports holding 29.92 percent of Kazan, while Rosoboronex port holds 21 percent. It says it currently owns 49.46 percent of Kamov, with the state-owned MiG Corp. controlling 49.64 percent.

Oboronprom early next year plans to acquire a controlling stake in the Rostvertol helicopter plant. It now owns 4.22 percent. Forty-eight percent of Rostvertol’s shares are on the market; the rest are held by management.

In 2006, the manufacturers slated to become part of the consolidated Russian helicopter company built more than 110 helicopters, which were valued by some at slightly more than $1.1 billion.

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