Friday, March 23, 2012
Russian Helicopters to Squeeze Out UUAP Shareholders
Under an action approved by the government's Federal Financial Markets Service, Russian Helicopters has initiated a "squeeze out" procedure to purchase the minority shares of Ulan-Ude Aviation Plant (UUAP) and assume a 100 percent stake in the Mi-8, Mi-17 and Mi-171 producer. Russian Helicopters began consolidating all of the country's manufacturing and service entities in 2008, a process that was finalized in early 2011, when the conglomerate owned around 75 percent of UUAP. The price for the buyout is set at 81.2 Rubles per share.
UUAP produces the Mi-8, Mi-17 and Mi-171 (shown here).
Russian Helicopters CFO Sergei Yarkovoy noted that the move to take 100 percent control of all of the subsidiaries is part of an "essential stage of a strategy, aimed at optimizing the company’s management system." The stage is aimed at developing "unified standards for business processes, corporate governance, and management decision making and realization principles. Moreover, the consolidation of the remaining minority shares of the subsidiaries at a remunerative price contributes to our main strategic objective—to maximize shareholder value of the company."
This week, Russian Helicopters also obtained quality management system (QMS) certification at its headquarters in Moscow. The approval follows a December 2011 audit from the Institute for Testing and Certification of Armaments and Military Equipment (ATCAME), which examined the QMS in relation to GOST RV 15.002-2003, a Russian military standard, and AS/EN 9100C, an international engineering standard. ATCAME general director Igor Zhivotkevich also presented a number of recommendations regarding the QMS. Russian Helicopters CEO Dmitry Petrov pointed to the importance of the QMS in the management of the helicopter-building group, improving the quality of the company's products and its reputation.