Russian steel tycoon buys blocking stake in Power Machines

Initiatives

Electricity monopoly Unified Energy System (UES) of Russia has finalized a deal to sell a blocking stake of 25% plus one share in Power Machines to Highstat Ltd.

Cyprus-registered Highstat Ltd., owned by Russian steel tycoon Alexei Mordashov, made the highest bid for the proposed stake on Thursday, offering 11.8 billion rubles ($486 million), or 5.42 rubles per ordinary share, approximately 25% above the market price. Mordashov already holds a 30.4% share in Power Machines. The Russian electricity giant will spend the income to cover a deficit in funds for a number of investment projects and to set up reserves for its restructuring program. Unified Energy System decided to sell the blocking stake in Power Machines late in March 2007, and ruled that it be sold to a private Russian strategic investor late in August. Power Machines, Russia’s leading heavy machinery manufacture, is currently owned by financial holding Interros, Unified Energy System and German electronics and engineering giant Siemens. (rian.ru)

ADVERTISEMENT

Reforms to raise productivity would strengthen recovery - OE... Analysis

Reforms to raise productivity would strengthen recovery - OE...

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.