Kalashnikov Concern to Sell More Shares to Private Investors

    Московская Международная Выставка ARMS and Hunting 2017, Москва, Гостиный Двор

    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.

    Hrachya H

    Managing Editor

    Being a lifelong firearms enthusiast, Hrachya always enjoys studying the history and design of guns and ammunition. He also writes for OvertDefense.com and SilahReport.com
    Should you need to contact him, feel free to shoot him a message at [email protected]