VSMPO-Avisma Corporation has announced it bought out the 100 percent in Carl.Edblom.Titan AB from Sweden Carl.Edblom.Trade AB (CETAB), which is the majority holder of Ukrainian CETAB-Nikopol, one of the biggest producers of titanium seamless pipes. It is the first time that a foreign investor prefers to sell its Ukrainian assets to a Russian company on apprehension for its future.
On November 2, VSMPO-Avisma completed the deal, which value is said to have reached $10 million, according to data available to Kommersant. “We supply raw to CETAB-Nikopol and have decided to acquire it to improve advanced processing of delivered raw,” a source with the corporation told Kommersant.
VSMPO-Avisma Corporation is the worldwide titanium/rolled metal maker. 2004 non-audited net profit reached $122.8 million under U.S. GAAP. The 60-percent beneficiaries are Vyacheslav Bresht, who chairs the BOD of VSMPO-Avisma, and Vladislav Tetyukhin, who is its general director. Renaissance Capital holds around 12 percent.
CETAB-Nikopol was founded in 2001 based on production assets of Nikopol South Pipe Plant (Russian acronym is NYuTZ). The enterprise covers 6 percent of the world market of titanium pipes. As of the date of the deal, Carl.Edblom.Titan AB held 50.1 percent in CETAB-Nikopol, NYuTZ owned the remainder.
The Sweden company might have pulled out from CETAB-Nikopol in the aftermath of investing instability in Ukraine, which State Property Fund is setting up the stage to declare null and void NYuTZ reorganization and get the enterprise back into the state ownership.
Another interesting point is the actual timing of the deal, as today is the heat of the battle between Bresht, Tetyukhin and Renaissance Capital on the one hand, and Viktor Vekselberg’s Renova Group on the other hand. Renova is challenging the deal whereby Bresht, Tetyukhin and Renaissance Capital have bought out its 13.4 percent in the corporation, and is determined to grasp complete control over it to establish an aircraft holding.