Transmashholding is asking for fire

Transmashholding may buy the manufacturer Gradov and Smerchey.
Transmashholding audits the assets of PJSC Motovilikha Plants, one of the country's largest manufacturers of artillery systems. Kommersant’s sources claim that Rostec, which controls the bulk of the company's debt, plans to sell about 50% of its shares and withdraw from creditors. Experts believe that the emergence of a new investor will benefit the company, and are confident that even with a “civilian” buyer, it will retain its defense profile.

As it became known to Kommersant, Transmashholding (TMH) conducts due diligence of Perm Motovilikha plants (MH). According to a source familiar with the situation, “Kommersant”, in June at least two visits of TMH managers to a defense enterprise took place. The delegation, specified the source “b”, included middle managers, technologists, energy, they studied the technical condition of equipment, networks, buildings. Another interlocutor of Kommersant at the enterprise confirmed the arrival of the delegation, but did not clarify the purpose of the visit.

The Motovilikhinskiye Zavody group unites the metallurgical complex and a number of engineering industries, manufactures oilfield equipment, produces multiple rocket launchers (Grad, Smerch, Tornado-G, Tornado-S) and barreled artillery. In March 2018, bankruptcy proceedings were introduced for the MoH. The net loss for 2018 was 3.3 billion rubles, revenue was 4.2 billion rubles.

Rostec, which controls the debt of the Ministry of Health, plans to withdraw from the creditors, reselling the debt of the Perm enterprise to a new investor, says one of the Kommersant sources. Now the volume of payables of the Ministry of Health of the Rostec subsidiary RT-Capital amounts to 17 billion rubles. At the same time, Rostec can sell its 50% stake in the Ministry of Health, the source said.

According to him, the sale of the company is being prepared in accordance with the agreements of the state corporation and TMH, according to which a number of defense assets are transferred into private hands. So, in 2018, Rostec has already sold Transkomplektholding (TKH, 50% were from Alexei Krivoruchko, who, after becoming deputy minister of defense, transferred his shares in trust to Arkady Privalov) 26% minus 1 share of the Kalashnikov concern, as a result, the share of a private company in the concern increased to 75% minus 1 share. Until 2018, in addition to Mr. Krivoruchko, co-owners of TMH Iskandar Makhmudov and Andrei Bokarev were directly represented in the capital of TKH.

TMH confirmed to “Kommersant” that in June the company's employees were at the Ministry of Health, but refrained from other comments. At the Ministry of Health and in "Rostec" declined to comment.

Transmashholding, 80% of which belongs to the structures of Iskandar Makhmudov, Andrey Bokarev, Dmitry Komissarov and Kirill Lipy, and 20% of the French Alstom, is the largest manufacturer of rolling stock for rail transport, produces locomotives, railway cars, trams and subway cars. Revenue under IFRS for 2018 - 224.8 billion rubles., Net profit - 17.07 billion rubles.

Initially, the largest creditor of Motovilikha was JSCB Russia, to which the enterprise owed about 7.6 billion rubles. In the autumn of 2018, RT-Capital received the rights to this debt under the cession agreement, as a result, Rostec's structure gained control over the company's bankruptcy, the majority of votes at the company's meeting of creditors, and only its representatives were included into the creditors committee. Sources of "Kommersant" reported on different scenarios of bankruptcy MOH, most often - on the option of separation of civil and defense industries and the sale of non-core assets. At “Motovilikha” the property inventory procedure was completed, it is being assessed.

Director of the Center for Analysis of Strategies and Technologies Ruslan Pukhov says that in the current economic situation, the emergence of a new investor will benefit the company. He is confident that the company in the event of a change of ownership will retain its defense profile. Now is not the time when you can take and move production to another place, the expert notes, recent stories about this show that it turns out “not that bad quality”.