RDIF, Middle East funds to sign deal on acquisition of 25% stake in Russian Helicopters with Rostec at SPIEF

Interfax, 16.06.2016

MOSCOW. June 16 (Interfax) - A consortium of the Russian Direct Investment Fund (RDIF) and Middle East sovereign funds will become an investor in Russian Helicopters Holding (MOEX: VERR), a source with knowledge of the situation told Interfax, adding that the deal with Rostec was due to be signed on the sidelines of the St. Petersburg International Economic Forum (SPIEF) on Thursday.

The agreement will lay down principle terms of investment in Russian Helicopters. In the end, the consortium will acquire up to 25% of the holding's shares. The deal may have a value of several hundred million dollars.

RDIF confirmed that the agreement with Rostec regarding Russian Helicopters might be signed at SPIEF but declined to comment on details of the possible deal and its potential partakers.

A potential shareholder of Russian Helicopters has identified itself publicly. Rostec head Sergei Chemezov said in March that the Mubdala Development Co sovereign fund (UAE) was being considered as a foreign investor and that relevant negotiations were underway.

Russian Helicopters (MOEX: VERR) is a subsidiary of Oboronprom (MOEX: OBPR) (a unit of Rostec state corporation). The holding was founded in 2007; it incorporates five helicopter plants, two design bureaus, enterprises manufacturing and servicing component parts, and an after-sale service company.