Russia’s state-owned Rostec said it will sell 75% minus one share in Technodinamika holding company, the leading developer and manufacturer of components and systems for the MC-21, including the neutral gas, electrical power, oxygen and fire protection systems, as well as landing gear components.

Rostec expects to get state approval by year-end.

Technodinamika also develops systems and units for the new PD-14 engine, one of the options for MC-21-300. It won the tender for logistics and maintenance for the Irkut Corp.-produced MC-21 after-sales service in December 2017.

In July, the company announced it will build an MRO hangar with Italian MRO provider Atitech in the Moscow region.

The Technodinamika sale is a part of Rostec’s development strategy, “which provides for an expansion of investor relations and public-private partnerships, as well as tasks related to the development of new products, access to new markets, and an increase of the share of civilian products in revenues to 50% by 2025.

As a result of the transaction, the state corporation will retain a blocking stake in Technodinamika with 25% plus 1 share,” Rostec said in a statement. It added that the corporation will increase “the share of third-party owners in its enterprises to boost operational efficiency, release internal reserves to finance growth, and improve product competitiveness.”

Earlier this year, Rostec sold 26% minus one share in the Kalashnikov concern. In July, the Rostec supervisory board decided to sell up to 49% of RT-Chemcomposite to a strategic investor.

“Today we are evaluating all our assets and negotiating the approval of the sale with all federal executive bodies. I hope that we will receive all necessary approvals and announce a competition by the end of the year. The competition will be closed,” Rostec CEO Sergey Chemezov said.

Polina Montag-Girmes