Power Machines intends to issue $300 million in additional shares in the first half of 2007 to draw investment for corporate development

Sunday, July 12, 2020

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Power Machines [RTS: SILM] intends to issue $300 million in additional shares in the first half of 2007 to draw investment for corporate development, Russia's Unified Energy System (UES) said Tuesday. Russia's electric power monopoly UES holds 25% plus one share in Power Machines. "Shares will be offered to all shareholders, including RAO UES, Interros and Siemens, which are key shareholders. We invite our partners to join the additional stock issue, with their holdings to be kept intact so that each shareholder retains a blocking interest. The other shares will be floated via open subscription," UES chief Anatoly Chubais said in an interview with business daily Kommersant. Chubais said Power Machines support the idea. Power Machines, Russia's largest engineering company, produces equipment for hydro, thermal, gas and nuclear power plants, and the transportation industry. The company has clients in 87 countries. Its revenues, calculated to Russian Accounting Standards, totaled almost $600 million in 2005, including $7.1 million in net profit. "I want Power Machines to become one of Russia's largest private producers on the market for equipment, competing with world brands. The company will have ultra-modern equipment and will be provided with orders from customers. In 2008, I will propose to the UES board of directors to sell the company's stake in Power Machines," Chubais said

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