The iconic firearms maker, which is owned by state holding company Rostec, will soon be firmly in the hands of private investors.
Rostec said Tuesday that a deal to sell roughly half of its 51% stake in the original maker of the AK-47 has been agreed, and is now ready to be approved by the government.
Powered by SmartAsset.com
SMARTASSET.COM
The buyer is a private company called TransKomplektHolding, which is owned in part by Kalashnikov chief executive Alexey Krivoruchko. The firm already has a 49% stake in Kalashnikov.
The sale is a part of a broader privatization drive, announced by President Vladimir Putin in 2016. Back then, Russia was suffering from a double whammy of collapsing oil prices and sanctions, and needed cash desperately.
Late last year, Moscow sold a 19.5% stake in its oil giant Rosneft to Qatar's sovereign wealth fund and Glencore.
Oil prices have since recovered somewhat, easing the pressure on the government to rush privatizations of some of its most prized assets.
http://money.cnn.com/2017/11/15/investing/kalashnikov-privatized-russia/index.html