Rosoboronexport buys 41% stake in VSMPO-Avisma

Russia’s state arms trader Rosoboronexport has acquired a 41 percent stake in the world’s largest producer of titanium, VSMPO-Avisma, Renaissance Capital Group, which heads the group of investors involved in the deal, said in a release, Interfax reported on September 12. No financial details were disclosed. A source in VSMPO-Avisma told Interfax that Rosoboronexport acquired the stake from company co-owner Vyacheslav Bresht. The Rosoboronexport press service confirmed the purchase of the 41 percent stake. Arkady Dvorkovich, head of the Russian president’s Expert Directorate, told reporters that Rosoboronexport’s acquisition of the VSMPO-Avisma shares was an “investment in tomorrow.” He said part of the deal was to implement a long-term cooperation deal with Boeing, one of VSMPO-Avisma’s biggest customers. Boeing is interested in stable, long-term supplies, and in placing bigger orders for components on the Russian market, he said. This transaction is designed to stabilise cooperation with Boeing, Dvorkovich said. Dvorkovich also said he hoped that acquisitions by state-owned companies would be one-off cases. Rosoboronexport’s interest in titanium production first came to light in January this year. At that time VSMPO-Avisma General Director Vladislav Tetyukhin and Chairman of the Board Vyacheslav Bresht owned about 30 percent of the company each. In July Rosoboronexport chief Sergei Chemezov said that Rosoboronexport would acquire a controlling stake in VSMPO-Avisma in the near future. Rosoboronexport may set up a holding company based on key special metallurgy companies, representatives from the state company said earlier. VSMPO and Avisma (RTS: AVSM) merged in 2005.