Andrei Bokarev, a self-made millionaire, and Kalashnikov Group CEO, Alexei Krivoruchko, look set to becoming the majority shareholders of Russia’s largest manufacturer of combat automatic and sniper rifles, artillery guided projectiles and other hunting and sporting weapons after Russia’s Rostec
State Corporation said on 7 February it is divesting 26% minus one share of its current 51% holding in the Kalashnikov group. The two men together already own 49% of the shares which they bought in 2014 for 1.3bn rubles (€20.5m).
The sale is subject to the approval of the Supervisory Board but Rostec’s Management has already given the sale its stamp of approval.
The Kalashnikov group own three brands: “Kalashnikov” (assault weapon), “Baikal” (hunting and civil weapons), and “Izhmash” (sporting rifle).
“In 2013, (Kalashnikov’s) loss amounted to almost 2 billion rubles,” (€31 million euros) Rostec head Sergei Chemezov said, adding that “after a number of significant transformations carried out by the Group, the replacement of management and the acquisition of the share in Kalashnikov by private investors, we jointly helped the company to achieve positive financial results.”
“In the event of a positive decision, Rostec State Corporation will still be the blockholder. This is necessary for maintaining a balance between commercial and public interests,” he specified.
Rostec State Corporation, whose declared 2014 revenues were around 147.8 billion rubles (€2.33bn), was established in 2007. It comprises 663 companies held by nine holding companies operating in the military-industrial complex, and six holding companies in civilian sectors. The group also includes 23 direct management organisations. In a statement Rostec said its products are delivered to more than 70 countries.