Rostec may sell the manufacturer of Armata

 Rostec began searching for an investor for Uralvagonzavod.
Origin source
Sources of RBC assume that this may be a concern of Kalashnikov. As a result, a multi-profile military-industrial holding company can be formed on its basis.

Patriotic investor

Rostek is looking for an investor for Uralvagonzavod (UVZ) that belongs to it. A high-ranking official of the Ministry of Industry and Trade, a source in Rostekh, and a source close to the management of UVZ informed RBC about this.

The search for an investor for one of the largest Russian producers of wagons and tanks is being discussed not for the first month, a source in Rostec said. This was confirmed by the interlocutor of RBC, close to the management of UVZ. Who will become an investor UVZ, while it is not clear. A source close to the management of the plant asserts that the concern "Kalashnikov" is considered as the main bidder.

The Kalashnikov concern is 51% owned by  Rostec, 49% by Transkomplektholding (TKH), owned by TCK-Invest, follows SPARK-Interfax. The owners of TKH-Invest are Alexey Krivoruchko (50%), Iskandar Mahmudov (25%) and Andrei Bokarev (25%). In late April,  Rostec decided to sell another 26% minus one share of its stake to Krivoruchko and Bokarev. Thus, after registration of this transaction, private investors will own 75% minus one share, and Rostec - a blocking stake.

The scheme for the sale of shares in the UVZ will be similar to the one on which the sale of the Kalashnikov itself is currently taking place, a source in the Ministry of Industry and Trade stated:  Rostec will retain a blocking stake (25% plus one share), and the rest will be given to "patriotic good investors" . The

Another source of RBC in the UVZ believes that the key role in the transaction is given to the figure of Andrei Bokarev, who is in good standing with President Vladimir Putin. Previously, Putin called the work of a businessman effective. He noted that Bokarev achieved good performance of Kalashnikov. "He is quite an efficient Russian entrepreneur, working effectively. In general, the concern posed such a good position, "the president said at the end of April this year, during a visit to the Rybinsk enterprise Vympel, a portion of which may also become the property of Kalashnikov.

The source of RBC from Rostec noted that there may be several investors at the UVZ.

Who is Andrei Bokarev

In 2017, Andrei Bokarev took 52nd place in the list of 200 richest businessmen in Russia for Forbes. His fortune is estimated at $ 1.7 billion. According to the source of RBC in the Defense Ministry, a 50-year-old businessman is a close friend of Defense Minister Sergei Shoigu.

Among the assets of Bokarev - a stake in the Ural Mining and Metallurgical Company, Transmashholding (annually supplies RZD to 70% of products), Transoyle, Kuzbassrazrezugol and Transgroup. Since the late 1990s, the businessman has been involved in most of the projects of businessman Iskandar Mahmudov and is considered his junior partner. One of the most high-profile deals of partners in recent years is the consolidation of 100% of Mosmetrostroi's shares in 2014, just in time for the start of a large-scale construction program for the Moscow metro.

In 2014, Transmashholding companies won tenders for the supply of wagons and repair of the rolling stock of the Moscow Metro for a total amount of more than $ 7 billion. In 2015, Bokarev and Mahmudov topped the Forbes rating "Kings of the state order."

In April of this year, Sergei Chemezov, commenting on the increase in the share of private investors in the Kalashnikov concern, said that Bokarev could acquire shares in another Rostekh holding. "This is a precision weapon. We now consider what share it will be possible to sell, "the head of the state corporation said.

In Rostekh, RBC did not comment on the search for an investor for Uralvagonzavod and denied negotiations with Bokarev. The businessman himself also told RBC that no negotiations are in progress regarding the acquisition of shares in the UVZ. The director for external communications of the concern "Kalashnikov" Sofia Ivanova also denied RBC information about the negotiations on the acquisition of a stake in Uralvagonzavod by the concern. "We did not and do not negotiate the purchase of a block of shares in UVZ," Ivanova said.

Profitable asset

Sources of RBC did not name the reason for the decision to transfer the UVZ to private hands. At the same time, RBC's interlocutor at Uralvagonzavod said: "If it is not a state business, but a private one, maybe money will be spent more efficiently."

Uralvagonzavod became the property of Rostec on December 27, 2016, when the relevant decree was signed by Vladimir Putin. One of the main tasks at the same time was called "financial recovery" of the enterprise, explained the head of the state corporation, Sergei Chemezov. He noted that the UVZ has "rather large debts", formed primarily due to the fact that the plant established a "daughter" of "UVZ-Logistic" (UVZL), which "bought itself wagons". The revenue of Uralvagonzavod for 2016 under IFRS amounted to 132 billion rubles, a net loss of 4.5 billion rubles.

"Kalashnikov" ceased to be unprofitable more than two years ago, said the director of the Center for Analysis of Strategies and Technologies Ruslan Pukhov. At the end of 2016, the proceeds of the Kalashnikov concern under IFRS amounted to 18.3 billion rubles, profit - 2.3 billion rubles.

Experts interviewed by RBC believe that all of UVZ's debts are "virtual" and will disappear if it sells to UVZ-Logistic. The press service of Rostec also noted that the deal with UVZ-Logistic will have a significant impact on the structuring of the existing debt of UVZ. "It is too early to speak about specific parameters of the deal, but we expect that the result will be most effective," the representative of the press service of the state corporation said.

Uralvagonzavod is a promising asset, believes Victor Murakhovsky, editor-in-chief of Arsenal of the Fatherland. He agrees that the debts of UVZ, which are referred to, "virtual" and most of them will disappear after the sale of "UVZ-Logistic." "In addition, the asset is administratively divided: UVZ produces both civil and military products. Taking into account these circumstances, the asset looks attractive, "the expert believes.

Murakhovsky also stressed that UVZ always competed with both "Media" and "Transmashholding" (TMH), whose president and co-owner is Andrei Bokarev. At the same time, UVZ and TMH jointly own the Tver Carriage Works (42% and 51% respectively).

Multidisciplinary Corporation

In April last year, the general director of "Kalashnikov" Alexey Krivoruchko said that by 2020 the concern is being transformed into a multi-profile defense holding. And this transformation is quite successful, said the director of the Center for Analysis of Strategies and Technologies Ruslan Pukhov.

In particular, in March of this year, Kalashnikov announced that it will acquire 33% of the Novosibirsk Institute of Applied Physics, which is engaged in the development of aircraft missiles and military jamming systems in order to "build up the necessary competencies in developing a new type of weapons."

In April, the head of the Rybinsk shipyard Vympel, which produces military boats, Oleg Belkov said that the shares of the plant are transferred from Rostek to the Kalashnikov concern. Putin has nothing against: "Maybe that's what you need to do," he said.

Sale of UVZ "Kalashnikov" or its co-owners is "lying down" in the plans to create a multi-profile defense holding, about which Krivoruchko said, says the editor-in-chief of the magazine "Export of Arms" Andrei Frolov. If you create such a holding, then it will be easier for Russia to compete in international markets, he said.

Interviewed by RBC analysts estimate Uralvagonzavod in the amount of 150 billion to 300 billion rubles.

Taking into account that the corporation is not public, the cost of UVZ can be estimated on the basis of its financial statements for 2016 and only approximately, explained the analyst of Finam Investment Company Alexei Kalachev. According to his calculations, at the moment it is 200-250 billion rubles.

Roman Tkachuk, Senior Analyst of Alpari, notes that the value of such assets at the time of sale depends on very many factors, including the position of the state. "One statement of the Ministry of Defense can change the cost by two or three times," the analyst explains. In his opinion, the price of UVZ - from 150 to 300 billion rubles.