DLA Piper advises Russian transformer equipment manufacturer Elektrozavod Group on its RUB30.5b sale to Sistema and Sberbank’s joint venture

DLA Piper has advised Elektrozavod Group, a Russian manufacturer of transformer equipment, on the RUB30.5 billion sale of 94.01% stake in JSC Elektrozavod and 100% in LLC Elektrokombinat to LLC Megapolis Invest, a joint venture between Sistema, a Russian diversified holding company, and Sberbank Investments, an investment arm of Russia’s largest bank.

The aim of the transaction is to create Russia’s leading manufacturer of transformer equipment and implement a real estate development project on Elektrozavod Group’s land plots totalling 19 ha near the Elektrozavodskaya metro station in Moscow.

Sistema and Sberbank Investments provided equity financing to Megapolis Invest in the amount of RUB11 billion and RUB3.5 billion, respectively. Additionally, Sberbank Investments provided the purchaser with debt financing of RUB10.2 billion.

DLA Piper advised Elektrozavod Group on the tax structuring and legal aspects of the transaction. The Moscow-based team was led by Corporate partner Constantine Lusignan, alongside Tax partner Igor Venediktov and Real Estate counsel Alexey Kolegov. They were assisted by Corporate legal director Maria Shevchenko, Tax senior associate Zaurbek Timaev, Real Estate senior associate Julia Zenova and Corporate associate Artem Pravdin.