RUSNANO Proceeds to Sell Its Share in Novomet

20 July 2016

RUSNANO announces the start of the open competition for the search for a buyer of its share in the portfolio company Novomet. The minimum price of the block (30.76%) determined by independent assessment is 7.5 billion rubles.

Novomet specialises in innovation technologies, from the development of new types of oil extraction equipment to supervising and selecting oil well equipment. The company’s main products are electric submersible centrifugal pumping plants. They are some of the best on the world market in terms of reliability and energy consumption, especially when extracting oil in complex deposits and offshore.

RUSNANO joined the project in 2011, having invested nearly 4 billion rubles. During this period, Novomet became one of the biggest companies in its segment, ranking second in terms of market share in Russia (20%) and seventh in the world (2.3%).

The technological innovation of the project is the use of protective and functional nanostructured coatings of tungsten carbide, with titanium and aluminium oxide, chromium and molybdenum treatment. As a consequence, the energy consumption of Novomet pumps is 20-30% lower than their equivalents and their corrosion and hydroabrasion resistance parameters are 1.5-2 times higher.

The company supplies products and renders services to a wide range of Russian and foreign oil companies in 15 countries. Service centres of the company operate in more than 10 countries: USA, Argentina, Ecuador, Romania, Iraq, Kuwait, Indonesia, Colombia, the UAE and Egypt, Azerbaijan, Kazakhstan. In 2015 nearly 40% of the company’s proceeds were accounted for by non-former-USSR countries.

The results of the open competition sale procedure will be announced on August 26, 2016 at 12 midday. The main criterion in choosing the winner will be the price offered for the block of shares owned by RUSNANO. The ability of the purchaser to successfully develop the project in cooperation with other shareholders will also be taken into account.

Additional information

Reference

RUSNANO Joint-Stock Company was founded in March 2011 through reorganization of state corporation Russian Corporation of Nanotechnologies. JSC RUSNANO contributes to implementation of the state policy on the development of the nanotechnology industry by investing directly and through investment funds of nanotechnology in financially effective high-technology projects providing the development of new production facilities in the Russian Federation. Its primary investment focus is in electronics, optoelectronics and telecommunications, healthcare and biotechnology, metallurgy and metalwork, energy, mechanical engineering and instrument making, construction and industrial materials, chemicals and petrochemicals. 100 percent of RUSNANO’s shares are state owned. Thanks to RUSNANO’s investments, there are currently 95 factories and R&D Centers opened in 37 regions in Russia. JSC RUSNANO has profit for the last 4 years.

Management of assets of RUSNANO JSC is carried out by Limited Liability Company established in December 2013, RUSNANO Management Company. Anatoly Chubais is the Chairman of its Executive Board.

Work to establish nanotechnology infrastructure and carry out educational programs is fulfilled by RUSNANO’s Fund for Infrastructure and Educational Programs, which was also established during the reorganization of the Russian Corporation of Nanotechnologies.