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. Last Updated: 07/27/2016

Siemens Gets Stake in Siloviye

Power engineering company Siloviye Mashiny said Thursday it had reached agreement with Siemens allowing the German electronics and engineering giant to swap a 25 percent stake in a plant partly owned by Siloviye for a direct stake in Siloviye itself.

The share swap will give Siloviye outright control of the Kaluga plant, in which it currently has a blocking minority stake, and allow it to consolidate the subsidiary in its balance sheet in preparation for a stock market flotation in 2004.

"We have a basic agreement, but the deal is still under discussion," general director Yevgeny Yakovlev said.

It was not clear how large a stake Siemens would get in Siloviye in return for its shareholding in the Kaluga plant, which is some 250 kilometers southwest of Moscow.

Siloviye Mashiny, the biggest Russian producer of power station equipment, is already consolidating three power plant subsidiaries into its balance sheet ahead of the planned stock exchange listing. A fourth plant in Kaluga, in which Siloviye Mashiny had only a minority blocking stake, could not be consolidated without the share swap with Siemens.

Yakovlev said Siloviye Mashiny is interested in buying other assets, among them Ukrainian nuclear power engineering company Turboatom (Kharkiv).

The company won a tender to construct four 64-megawatt turnkey energy units at the Iraqi Makkul hydroelectric power plant for 77 million euros ($78.5 million), it said in a statement Thursday. (Reuters, Prime-Tass)