"Gidromashservis" buys Bobruisk Machine Building Plant
The Russian group GMS ("Gidromashservis") acquired 100% of additional emission of shares of JSC “Bobruisk Machine-Building Plant”. Therefore the group, one of the largest manufacturers of pumping equipment for oil and gas industry in Russia owes 57% of stake in the Belarusian enterprise.
The deal amounted to USD 9.6 million and was financed entirely by borrowing. “All the money will be spent on modernization of production sites, opening of new lines and purchase of equipment”, said the press service of the GMS.
“All the money will be spent on modernization of production sites, opening of new lines and purchase of equipment”, said the press service of the GMS.
The deal was among the first in a series of the planned sale agreements of Belarusian industrial assets to Russian investors.
The GMS Group has received a prior permission of the Belarusian government to buy a controlling stake of the enterprise. The transaction is expected to be completed in the autumn of 2011.
The GMS Group is one of the largest manufacturers of pumping equipment for oil and gas industry, energy, housing and water sector in Russia and CIS, one of the leading manufacturers of modular oil field equipment. The company performs a wide range of design, construction and commissioning of the integrated oil and gas surface facilities construction and water management.
The GMS Group revenues for the first quarter of 2011 amounted to 7.1 billion Russian rubles, net profit to 1 billion Russian rubles. Global Depository Receipts of the GMS are traded on the London Stock Exchange. Bobruisk Machine Building Plant is one of the largest companies in the CIS for the production of centrifugal pumps for petroleum, petrochemical, mining, metallurgical and other industries.