Russia’s Federal Antimonopoly service has given a green light to French engineering group Alstom to acquire a blocking stake in Transmashholding (TMH), Russia’s largest supplier of rolling stock for the domestic rail sector, Andrei Bokarev, chairman of the TMH board of directors, said on Thursday.
The deal was approved by the Russian government’s foreign investment commission on March 25. The contract, under which Alstom is acquiring a 25% plus one share in the equity of Transmashholding’s sole nominal shareholder, Dutch Breakers Investments BV, was also signed in March 2010.
Alstom planned to pay for the share package in two tranches, with an initial payment expected to equal $75 million. The exact value of the transaction will depend on Transmashholding’s results for 2008-2011.
Bokarev has said, however, that Transmashholding may withdraw from the Alstom deal, if the French company is set to pay less than 250 million euros to buy 25% plus one share.
MOSCOW, April 21 (RIA Novosti)