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Power Machines comment on the article of “DP” on the change of control over the company in favour of Rostec


A representative of Alexei Mordashov , the shareholder of Power Machines OJSC, comments on the article in Business Petersburg: " Rostec can gain control over Power Machines  of Alexei Mordashov."

 A representative of Alexei Mordashov, the shareholder of Power Machines OJSC, comments on the article in Business Petersburg, which was published on Dec. 23 at dp.ru.  The article is called "Rostec can gain control over Power Machines of Alexei Mordashov."

"Normally we do not comment on market rumours, but in this case we want to declare that there are no and never were, any negotiations for the sale of Power Machines OJSC," - the company representative wrote to the editor.Yesterday, on December 23, dp.ru posted that state concern Rostec is close to gaining control over power engineering corporation Power Machines with revenues of 64.9 billion roubles. Three independent sources have informed the site about it. But the company has officially called  it   “market speculation" and declined to comment on the information. The representative of Rostec also said that he was not aware of this information and would be able to clarify it the next morning (that is, today -Ed.)

According to Ivan Grigoriev, Chief Executive of SIG Surveillance "Price of Power Machines taking into account the excellent past financial performance, by the end of 2013 could have been estimated at $ 2 billion. Given the recent values of sectoral multipliers "fair" value of the company today could be as little as $ 350-575 million. However, given the current economic and political situation and exchange rates, the company could be more realistically assessed at  to $ 150 million”.

According to some experts interviewed by dp.ru acquisition of Power Machines by state corporation Rostec is a logical step in the current economic situation, when it is quite difficult for a private investor to attract financial resources for the modernization of a large engineering holding; Power Machines account for 4% of the world market of energy engineering. Order portfolio of the holding is estimated at $ 6 billion. And a significant portion of orders from government agencies, such as Rusgidro, provides an enviable return for the holding of about 20%, which is significantly higher than that of competitors General Electric, Siemens, and Alstom. The share of export orders in the portfolio is 35%.

A few years ago Power Machines management adopted a programma of renovation in production capacity and improvement of production organization, which should increase labour productivity in the holding company and bring it on a par with global industry leaders. In 2012 a project was completed for the construction of the first starting complex of the plant aimed at producing a new product for Russia’s energy engineering - low-speed steam turbines for nuclear power plants. In addition, for further development of new production, besides the existing nomenclature it is planned to increase production of high power steam turbines and turbogenerators (over 500 Mw) for large coal units. In 2013, the company launched a plant jointly with Toshiba to produce power transformers and is in the process of building a plant together with Siemens to produce gas turbines. The total investment in both projects is about 20 billion roubles.However, with today's political situation, it has become more difficult for Alexei Mordashov to attract foreign investment and new technologies.

"Japan, Germany and other developed countries having funds and advanced technology, have adopted sanctions against Russia. It has become more difficult for Mordashov to conduct energy engineering business in such conditions. He has recently increased investment in his gold mining assets. At the same time, Rostec has been consolidating assets in energy engineering for quite a while. In addition, the products of Power Machines are made of special steel, the production of which is carried out partly by Rostec enterprises. And the government too is interested in concentrating in it’s hands the enterprises that produce almost the entire nomenclature of energy engineering ", - says the head of the analytical department of financial advisory company Lenmontazhstroy, Dmitry Kumanovskiy.


"Delovoi Peterburg", 12/24/2014, 14:17

Short address for the article:  http://www.dp.ru/103nbq/