Power industry giant Siemens of Germany has offered to buy a 30.4 percent stake in Russian turbine supplier Power Machines that is held by Russian holding company Interros.
Interros said September 5 that Siemens — which already owns 25 percent plus one share of Power Machines — sent its request to Interros the day before.
Interros announced in July it intended to sell its stake in Power Machines, Russia’s largest turbine maker and hydropower equipment supplier. (HNN 8/1/07) It was speculated that the buyer was to be the primary owner of steel company Severstal, Alexei Mordashov.
However, in accordance with earlier agreements, Siemens and Russia’s giant electric utility, Unified Energy Systems (UES) — which also owns 25 percent plus a share — have the right of preferential purchase of the Interros shares.
“Siemens informed us it wanted to exercise its right to purchase the stake and already asked the state property fund,” Interros Deputy Director Serguey Batekhin said.
Siemens previously bid to take over Power Machines outright but its bid was thrown out in 2005 by Russia’s anti-monopoly body because of national security concerns, because Power Machines produces military equipment.
The UES board voted August 31 to waive its right to purchase the Power Machines stake. UES Chief Executive Anatoly Chubais said last year he would recommend to the UES board in 2008 the sale of its blocking stake in Power Machines.
Power Machines currently is carrying out a US$145 million investment program to boost production, modernize facilities, and position itself in the Russian power sector through 2015.