RDIF and Arab investors look to buy more of Russian Helicopters

Russian Helicopters Mi-171A2

Russian Direct Investment Fund (RDIF) and an undisclosed group of Arab investors are considering buying up more shares in Russian Helicopters.

In February, the two parties formed a consortium to acquire a minority 12% stake in the Russian OEM from owner Rostec for $300 million. The agreement included an option to extend the stake to 30% at a cost of $600 million, the consortium is looking to exercise this option.

RDIF is Russia’s sovereign wealth fund with a reserved capital of $10 billion. The company was established in 2011 to make co-equity investments in Russian firms.

On a business visit to the UAE, Russian minister of industry and trade Denis Manturov said: “There is such an option and we discussed this matter [during the visit]. We are open to such a decision. All will depend on terms. Anyway, this matter is on the agenda.”

The shares were originally offered up for sale to finance the company’s strategy, including the development of new helicopters and boost M&A activities.

Commenting on the initial sale, Andrey Boginsky, CEO of Russian Helicopters said: “Russian Helicopters aims to strengthen its position as a leader in the global helicopter market through the continued development of new products, the provision of a leading after-sales service and a focus on expanding operations into new emerging markets. The consortium of investors, led by RDIF, will allow us to accelerate the implementation of our growth strategy.”