The Russian Direct Investment Fund (RDIF) has formed a consortium comprising leading Middle Eastern funds and finalized a deal to acquire a minority stake in Russian Helicopters (part of the Rostec State Corporation). Russian Helicopters valuation was estimated at $2.35 billion.
The transaction consists of two stages. The first stage involves the sale of a 12 percent stake and an investment of $300 million, as well as an agreed-upon subsequent potential increase in investment to $600 million.
“Today we have agreed with the Russian Direct Investment Fund and Middle Eastern 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,” said Sergei Chemezov, CEO of the State Corporation Rostec.
The deal will increase the authorized capital of the holding company. This will accumulate a significant amount of funds within the company. These funds are necessary for the implementation of the company’s strategy and business plan, including the development of new types of helicopters.
In addition, these funds will help implement the investment program of the holding company, as well as finance possible M&A activities aimed at increasing the holding’s value and finance capital programs.
“Russian Helicopters has established itself as one of the world’s leading helicopter manufacturers with a growing presence in key emerging markets,” said Kirill Dmitriev, CEO of the Russian Direct Investment Fund. “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. Russian Helicopters is an attractive long-term investment opportunity with significant growth potential.”
“Russian Helicopters aims to strengthen its position as a leader in the global helicopter market through the continued development of new products, the provision of a leading after-sales service and a focus on expanding operations into new emerging markets,” said Andrey Boginsky, CEO of Russian Helicopters. “The consortium of investors, led by RDIF, will allow us to accelerate the implementation of our growth strategy.”
