The shareholders of Turboatom JSC intend to approve the agreement on the accession of Electrotyazhmash to it

The shareholders of Turboatom JSC, in which more than 75.22% belongs to the state, intend to approve the agreement on the joining of Electrotyazhmash JSC (both-Kharkiv) and the corresponding transfer act.

According to the publication in the disclosure system of the National Securities and Stock Market Commission on Saturday, the relevant issues were included in the agenda of the remote extraordinary meeting of shareholders of Turboatom JSC on September 28, initiated by the State Property Fund of Ukraine.

The meeting is also expected to approve clarifications to the terms of the agreement on the merger of Electrotyazhmash, approve the conditions for the conversion of shares of Electrotyazhmash JSC into shares of Turboatom and decide on the issue of shares for the purpose of such conversion.

As reported, on August 27, an extraordinary meeting of shareholders of Turboatom JSC took place at which the question of joining Electrotyazhmash to Turboatom was raised.

The name of JSC Turboatom is supposed to be replaced by JSC Ukrainian Power Machines (JSC Ukrenergomashiny).

Partner of Turboatom in the production chain, the state-owned enterprise Electrotyazhmash Plant specializes in the production of powerful hydrogenerators, turbine generators for thermal power plants and nuclear power plants, electric motors gators for drives of rolling mills, mine hoists, traction electrical equipment for railway and urban transport. It supplies products to India, Kazakhstan, Bangladesh and other countries.

Being in a complex financial plant in recent years in 2020 has increased its net loss by 5.8 times by 2019 – to UAH 451 million, net income decreased by 2.3 times – up to UAH 821.8 million.

In April, the Ukrainian government approved the corporatization of the state-owned enterprise. Electrotyazhmash also requested the AMCU’s opinion on a possible merger with Turboatom.

Turboatom is the only Ukrainian manufacturer of turbine equipment for hydro, thermal and nuclear power plants. The geography of the company’s supplies covers 45 countries of Europe, Asia, America and Africa.

As reported, Turboatom finished 2020 with a net profit of UAH 226.53 million, which is 27.8% less than in 2019 (UAH 314.07 million), net income almost halved – to UAH 1 billion 466 million.

As of the first quarter of 2021, the state owns more than 75.22% of the shares. A large minority shareholder (15.34% of shares) is the Seventh venture investment fund managed by AMC Svarog Asset Management, which is associated with businessman Konstantin Grigorishin. Another 5.598% of shares belong to Biscone Ltd., registered in Cyprus, affiliated, according to Turboatom, with the Russian holding Power Machines (the actual owner is Alexey Mordashov).

The authorized capital of the JSC is UAH 105.62 million , the nominal share – UAH 0.25.

The general director of Turboatom Viktor Subbotin announced in the spring of this year about the critical situation and the actual Electrotyazhmash, and the possibility of disruption in connection with this Ukrhydroenergo contracts with EBRD financing and EIB.

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