According to Russian news agency TASS, during the Dubai Air Show 2017, Sergey Chemazov, the CEO of the Russian state corporation Rostec, has announced that 26% (minus one share) of Kalashnikov Concern will be sold to private investors. The decision is already made and awaits approval from the government of Russian Federation.

Left to right: Sergey Chemazov, Dmitri Lebedev (the designer of PL-15 pistol), Alexey Krivoruchko

As of now, the 51% of Kalashnikov Concern’s shares are owned by the state corporation Rostec and 49% – by private investors. As soon as the transaction is done, the private ownership percentage of Kalashnikov Concern will increase to 75%. Even after that transaction, Rostec corporation will retain 25% of the shares plus one share, which will make it a blockholder. It means that the mentioned amount of shares will still allow Rostec to have a major influence on the decision making. So KC becomes largely privately owned company with still a very strong government presence.

Earlier it was expected that the buyers of these shares will be Andrey Bokarev (the co-owner and CEO of Transmashholding) and Alexey Krivoruchko (CEO of Kalashnikov Concern). However, about a week ago there was an announcement that Bokarev along with another partner (Iskandar Mahmudov) will leave the company selling their shares. Presumably, Krivoruchko will purchase their shares.

UPDATE [05 Dec 2017]: According to Interfax news agency, the Russian government has approved this transaction. The total amount of shares (26% minus one share) is 689,805.