In a November 27 statement, Russian Technologies announced that it will sell 45.4 percent of its ownership in VSMPO-Avisma, the conglomerate’s titanium company, to Nordcom. Nordcom is a Cyprus-based joint venture between VSMPO-Avisma’s management, which control 75 percent of Nordcom, and Gazprombank, the state-funded lender controlling 25 percent of the venture, Financial Times reports.
After the deal is complete, Nordcom will become the titanium producer’s majority shareholder, with 50.1 percent control of VSMPO-Avisma. Nordcom had already purchased a 4.6 percent share of the business in the stock market earlier in the year.
Russian Technologies will maintain a 25 percent plus one share of VSMPO-Avisma, an arrangement that will allow the state-owned company to keep some veto rights in corporate decisions. Remaining shares in the industrial producer will remain on the stock market, according to Financial Times.
Russian Technologies first purchased control of VSMPO-Avisma in 2006 in an effort to combine titanium production in Russia, Ukraine and Kazakhstan. Since then, Russian Technologies has had a difficult time repaying debts to Sberbank and VTB, the lenders that facilitated the acquisition.
VSMPO-Avisma holds a 30 percent global market share, supplying titanium to Boeing, Airbusand other Russian manufacturers.