Rostec has reached an agreement to sell some of its stake in Russian Helicopters to a consortium of Russian and Middle Eastern investment funds for a figure of around $600 million.
The move is designed to inject additional capital into the owner of the Mil and Kamov brands to allow it to develop new models and expand into new markets, says the Russian state-owned holding company.
As well as the stake sale, Russian Helicopters will additionally issue new shares, Rostec says. Both will be acquired by the Russian Direct Investment Fund (RDIF) and a number of Middle Eastern funds, giving them around 25% of the company's capital.
Sergei Chemezov, Rostec director general, says the divestment will “provide Russian Helicopters opportunities to enter new markets and gain a foothold in them.”
“We believe that the investment of RDIF and partners will allow Russian Helicopters to accelerate the implementation of its investment program, reduce debt and strengthen its position in the international market,” says Kirill Dmitriev, director general of RDIF.