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UAC may scrap plans to sell a block of IFC shares to VEB


UAC may sell 48,4% of IFC shares to a third-party investor instead of Vnesheconombank

United Aircraft Corporation (UAC) may sell 48,4% of Ilyushin Finance & Co. (IFC) shares to a third-party investor instead of Vnesheconombank (VEB) as was planned. It was reported by Interfax with reference to a source familiar with the situation.

A source close to negotiations confirmed the possibility. "It is planned to sell the block of IFC’s shares this year. At first it was planned to sell it to VEB, but now a third-party investor may be chosen instead, because “VEB has work to do”, - he said.

Official representatives of UAC and IFC declined to comment on the situation.

It was reported in April that the government approved the purchase of 48,8% of IFC’s shares (currently owned by UAC) by VEB. The price of the block was not specified in the decree; it was stated that the price must not be lower than the shares’ market value defined by an independent appraiser. A source told Interfax that 100% of IFC’s shares are assessed at $700 million.

USA and EU imposed sanctions against Vnesheconombank, despite the fact that officially it is not a state-owned bank.

The core business of IFC is leasing and sales of Russian-produced aircraft: Tu-204, Tu-214, An-148, An-124 and Il-96