Idex 2017: Middle East backers to buy stake in Russian Helicopters

The Russian Direct Investment Fund (RDIF) has formed a consortium comprising leading Middle East funds and finalised a deal to acquire a minority stake in Russian Helicopters, which is part of the Rostec State Corporation. The transaction consists of two stages. The first involves the sale of a 12 per cent stake and an investment of US$300 million, as well as an agreed-upon subsequent potential increase in investment to $600m. The deal will help the company to implement its strategy and business plan, including the development of new types of helicopters, the Russian firm said. The company’s range of helicopters includes light-lift models such as the Ansat GMSU 2 and Ka-226T. Its military offerings include the Mi-28 attack aircraft. “The RDIF consortium’s investment in Russian Helicopters will enable the company to continue its expansion into new markets, particularly in the Middle East, thanks to the participation of our partners from the region,” said Kirill Dmitriev, the chief executive of the RDIF. Sergei Chemezov, chief executive of Rostec, said the company’s value is estimated at more than $2 billion. “Today we have agreed with the Russian Direct Investment Fund and Middle East investors, on the final parameters of the deal and signed documents for the sale of a minority stake in Russian Helicopters, based on the valuation of the company at $2.35 billion.” Rostec is a Russian corporation, created in 2007 to promote development, production and export of high-tech industrial products for civil and military purposes. It is comprised of over 700 organisations, and its portfolio includes brands such as the Russian car maker Avtovaz, the lorry maker Kamaz, the arms manufacturer Kalashnikov Concern, Russian Helicopters, and the world’s largest titanium producer VSMPO-Avisma among others. Consolidated revenues of Rostec companies in 2015 exceeded $19bn. Planned investment up to 2025 is more than $70bn, it said. __________________________________ Karim Sahib / AFP ■ Idex 2017 opens in Abu Dhabi – in pictures ■ Dh4.41bn worth of arms deals struck on day one of defence show ■ UK's Hesco hopes to employ UAE war veterans at its Al Ain factory ■ Mena defence spending to rise this year as conflicts create demand for arms ■ UAE will count on technologies to keep terror threats at bay __________________________________ chnelson@thenational.ae Follow The National's Business section on Twitter

Idex 2017: Middle East backers to buy stake in Russian Helicopters

The Russian Direct Investment Fund has created a consortium of Middle East investors to take a 12 per cent stake in the Russia-based builder of helicopters.