MOSCOW, December 7 (RIA Novosti) - Russian electricity monopoly Unified Energy System announced Wednesday that it had closed a $101.4-million deal to buy a blocking stake in Silovye Mashiny, Russia's leading heavy machinery manufacturer.
"Based on the decision by the board of directors on October 4, 2005, UES has acquired a 22.43% stake in Silovye Machiny," UES said in a press release.
Along with the shares in Silovye Machiny already owned by UES subsidiary Lenenergo, UES will garner a blocking stake (25% plus one share) in the company.
The stake was evaluated by KPMG auditors and confirmed by the board of directors at a maximum of $107 million.
In late October, the UES board had approved a credit agreement with Vneshtorgbank (Foreign Trade Bank) for purchasing the stake.
Silovye Mashiny produces equipment for hydro, thermal, gas and nuclear power plants.
The stake was owned by tycoon Vladimir Potanin's Interros. UES and Interros are set to manage another 30% stake.
