Megapolis acquires Elektrozavod
LLC Megapolis, a joint venture between Sistema and Sber has acquired transformer manufacturer Elektrozavod.
Sistema PJSFC, a Russian public diversified holding company, announces that LLC Megapolis Invest, a joint venture between Sistema (75.86%) and LLC Sberbank Investments (24.14%), has closed the transaction whereby it acquired a 64.37% stake in JSC Elektrozavod and 100% in LLC Elektrokombinat from certain private investors.
The Transaction was valued at around $333 million. The goal of the Transaction is to create Russia’s leading manufacturer of transformer equipment and implement a real estate development project on land plots located in Moscow owned by Elektrozavod Group.
Sistema and SberInvest provided equity financing to the Purchaser in the amount of $148 milion and $47 milion, respectively. Additionally, SberInvest provided the Purchaser with debt financing of $137 million.
The parties also concluded an agreement granting Sistema the right to acquire and SberInvest the right to sell to the Group its stake in the equity capital of the Purchaser. Additional co-investors may be brought in at a later stage for both the transformer business and the real estate development project of Elektrozavod Group.
Elektrozavod Group includes transformer equipment production facilities in Moscow and Ufa, maintenance divisions, research and design institutes, an engineering centre and land plots totalling 19 hectares near the Elektrozavodskaya metro station in Moscow.
Photo (for illustrative purposes): Transformator / Carlos Barengo / Pixabay / Free for commercial use