VEB State Corporation is purchasing a block of shares of Sukhoi Holding Company owned by United Aircraft Corporation (UAC) in order to improve the financial situation of Sukhoi Civil Aircraft Company (SCAC). Under the agreement, VEB has the opportunity to sell the shares back to UAC at purchase price in ten years, said in the UAC’s reports prepared for the meeting of shareholders scheduled for September 25th 2014, Prime reports.
"The key condition of this deal is the opportunity for VEB to sell the block of shares back to UAC (buyback) in ten years under the terms and conditions specified above", - said in an explanatory notes.
According to the report VEB is purchasing about 11,61 million shares of Sukhoi Holding Company (the cost of one share is 2,45 thousand rubles). Thus the deal is valued at $694 million.
The deal was initiated in accordance with the instructions given by the president on July 24th 2013 and the government – on July 31st 2013; the instructions were focused on improving financial situation of SCAC, explained in the report. The funds received will be transferred to SCAC.
The net loss of SCAC for 2012 was 4,5 billion rubles; in the first half of 2013, when decision to start the company’s financial recovery was made, the net loss reached 5,8 billion rubles. The shareholders of the SCAC are: Sukhoi Holding Company (part of UAC, owns 75% minus 1 share) and Alenia Aermacchi (25% plus 1 share). Today 89,6% of Sukhoi shares are owned by UAC, the rest 10,4% - by the Federal Agency for State Property Management.