RDIF, Saudi Aramco and PIF agree to acquire shareholding in Novomet

Press release, 14.10.2019

Riyadh, October 14, 2019 – A consortium of investors including the Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, Saudi Arabia’s state oil company Saudi Aramco and the Kingdom’s sovereign wealth fund - Public Investment Fund (PIF) – have signed transaction documents to acquire from ROSNANO a 30.76% shareholding in Novomet, one of the leading producers of oil-submersible equipment in Russia and globally.

The announcement was made today in presence of Russian President Vladimir Putin and King Salman bin Abdulaziz Al Saud of Saudi Arabia.

The investment is expected to be completed upon gaining approval from the Federal Antimonopoly Service of the Russian Federation (FAS). Associated documents have been sent to FAS by the Consortium.

It will be the first joint investment by RDIF and Saudi Aramco within the framework of the energy platform created in 2017 with the participation of PIF. The platform aims to invest in companies in the energy sector of the Russian Federation with the possibility of subsequent localization of business in Saudi Arabia and the Middle East.

The consortium will contribute to the further development of Novomet's business, both in existing and in new markets, including the Middle East. In 2018, with the support of the consortium, Novomet has shipped equipment to the Saudi Arabian market for the first time.

Over the past 10 years, Novomet has been the fastest growing Russian provider of oil production solutions and is the 6th largest player in its field with a 3.9% share of the global oilfield equipment market. The company's business is widely diversified and it supplies equipment to customers in 25 countries.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
“We welcome the investment of our partners from the Kingdom of Saudi Arabia in leading Russian companies, including the first investment with Saudi Aramco not only within the framework of our joint energy platform, but also in Russia as a whole. RDIF, in partnership with Saudi Aramco and PIF, will support significant growth of Novomet's business both in Saudi Arabia and other key markets in the Middle East. The company will be able to expand its pipeline of orders for the production and maintenance of equipment and further develop its product line.”

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Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Currently, RDIF has experience of the successful joint implementation of more than 70 projects with foreign partners totaling more than RUB1.5 tn and covering 95% of the regions of the Russian Federation. RDIF portfolio companies employ more than 800,000 people and generate revenues which equate to more than 6% of Russia’s GDP. RDIF established joint strategic partnerships with leading international co-investors from more than 15 countries that total more than $40 bn. Further information can be found at www.rdif.ru

Novomet is one of the leading Russian manufacturers of high-tech oil-submersible equipment. Along with production of oil extraction and water ascending systems the company also provides a comprehensive service ranging from selection of equipment for specific well to its complete overhaul.

For additional information contact:
Arseniy Palagin
Russian Direct Investment Fund
Press Secretary
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: arseniy.palagin@rdif.ru

Andrew Leach / Maria Shiryaevskaya
Hudson Sandler
Tel: +44 (0) 20 7796 4133