The Russian Direct Investment Fund (RDIF) — Russia’s sovereign wealth fund — has formed a consortium comprising leading Middle Eastern funds and finalized a deal to acquire a minority stake in Russian Helicopters (part of the Rostec State Corporation). Russian Helicopters valuation was estimated at $2.35bn.
The move is intended to accelerate the implementation of Russian Helicopters’ growth strategy and its expansion into new markets, particularly in the Middle East.
The transaction consists of two stages. The first stage involves the sale of a 12% stake and an investment of $300m, as well as an agreed-upon subsequent potential increase in investment to $600m. The deal will increase the authorized capital of the holding company.
Rostec says the funds are necessary for the implementation of the Company’s strategy and business plan, including the development of new types of helicopters. In addition, the company indicates that the funds will help implement the investment programme of the holding company, as well as financing possible M&A activities.