PRESS: Kalashnikov may buy 60% in NPO Molniya from Rostec

MOSCOW, Mar 28 (PRIME) -- Russian arms producer Kalashnikov plans to buy a 60% stake in space research and manufacturing association NPO Molniya from state industrial holding Rostec, Kommersant business daily reported late on Tuesday citing sources in the defense industry and the government staff.

The value of the deal, which is to be closed within a month, was not disclosed and is yet to be estimated, the daily reported, citing a government staff source.

Kalashnikov CEO Alexei Krivoruchko and representatives of Rostec confirmed the fact of the deal, which was supported by the government and is expected to help NPO Molniya to recover financially in order to participate in the development of reusable space shuttles and target missiles of various purposes.

Rostec representatives said that measures were taken to conclude an amicable deal with NPO Molniya’s creditors to stop a bankruptcy case in January, in line with President Vladimir Putin’s order. Rostec also developed a financial recovery program for NPO Molniya until 2019, which is already being implemented.

NPO Molniya participated earlier in creation of the Buran space shuttle.

(57.1747 rubles – U.S. $1)

End