Rostec and “Kalashnikov” agreed on the terms of the sale of the aerospace enterprise “Molniya”

KUBINKA, August 21. /TASS/. Rostec will sell to the concern “Kalashnikov” 60% of shares of scientific-production Association “Lightning”, participated in the creation of the orbital spacecraft “Buran”, on terms to prevent bankruptcy, as well as a ban on further sale of shares without the consent of the Corporation for a period of 10 years. This was reported by TASS Deputy General Director of Rostec Alexander Nazarov on the sidelines of the forum “Army-2018”.

“Giving “Lightning” to a private investor, we will, in the framework of the Treaty reserve the right for ten years to control of the prohibition of actions that may lead to the alienation of immovable property not related to non-core assets. In favor of the state Corporation registers a pledge of the stock of NPO “Molniya” since the ban on alienation without the consent of Rostec for a period of 10 years,” he said, adding that the concern “Kalashnikov” the deferral of payment under the contract for a period of one year with possible prolongation of this term.

The terms of the transaction with the concern “Kalashnikov”

“Kalashnikov” will spend for purchase of a package of “Lightning” of more than 1 billion rubles, taking into account the need of repayment of current debts of the enterprise, told TASS a source familiar with the negotiations. “The concern will have to repay the historical debt of “Lightning” in the amount of 600-700 million roubles at the expense of own funds and the total group cost for the transaction taking into consideration the investment value of the shares of the NGO “Lightning” in 348,2 million rubles will amount to more than 1 billion rubles,” – said the source.

For repayment of the debt of the NGO “Lightning”, which, according to the source, at the moment is 1.35 billion, will be sold non-core assets of the company, Rostec estimated 1.19 billion. However, the concern “Kalashnikov” believe that the property is unlikely to sell at the appraised value, and the realization of non-core assets, “Lightning” may be delayed for two years, the source added. The process will lead, “daughter of” Rostec “RT – STROYTECH”.

Nazarov also noted that the concern “Kalashnikov” the deferral of payment under the contract for a period of one year with possible prolongation of this term. The transaction amount in Assistance is not known. Currently, the terms of the transaction agreed with the purchaser. According to Nazarov, investors have adopted all restrictions under the agreement, including the obligation of the group on a quarterly basis to provide all the necessary documents.

The parties plan to close the deal in April 2018, however, the sale process was delayed due to long negotiation, told the TASS source. According to Nazarov, the finalization of the transaction expected by the end of the year.

Financial recovery of “Lightning”

In Rostec say that the non-core real estate, NPO “Molniya” is estimated more than 1 billion rubles, the proceeds from the sale will go to future events on the financial health of the enterprise. “With the aim of overcoming the crisis, the company is actively increasing the volume of defense procurement in the field of aerospace subjects. As of today, “Lightning” are performed and planned to the conclusion on the period from 2018 to 2019 themed orders worth 2.15 billion rubles. Of these, 1.34 billion roubles are already signed contracts,” – said Nazarov.

According to him, these orders include the development of new models of military equipment within the framework of the missile and the target subjects, mass production and refinement of target missiles from the base SAM 5Я23, 5Я24, maintenance and technical supervision, execution of works on technical inspection and repair of military equipment.

“Kalashnikov” is also interested in finalizing a small Autonomous high-altitude high-speed missile-targets “swift” and “Armavir” for use in testing and in the framework of the implementation of the group’s development strategy until 2025. The target missile “Armavir” and “swift” simulate cruise missiles at altitudes from 300 to 18 thousand meters.

Scientific-production Association “Lightning” is one of the largest enterprises of aerospace industry of Russia, founded in 1976 to solve knowledge-intensive tasks. The company participated in the creation of orbital space Shuttle “Buran”, which made her only space flight in 1988. The share of Rostec in the authorized capital of NGOs is 60%.

Since 2010, the NGO “Lightning” was in bankruptcy proceedings in December 2010 against the company had introduced a procedure of observation, from July of 2012 was a procedure of external management. In January 2017, the Moscow Arbitration court approved a settlement agreement of scientific – production enterprises with the creditors and terminated the proceedings in the bankruptcy case.