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Alstom becomes shareholder of Transmashholding and joins the Russian companys board of directors

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Alstom has finalised its partnership agreement with Transmashholding by acquiring a 25% stake (plus one share) of TMH, the leading Russian rail manufacturer. The deal was closed after Alstom received all approvals of the appropriate Russian authorities. The Federal Antimonopoly Service, Russias anti-trust agency, and the Government Commission on foreign investments in strategic sectors issued a favourable decision for this deal. Approval was previously granted by the EU, Ukrainian and Kazakh authorities.

The closing of the deal took place on 27 May in Amsterdam, head office of Transmashholding's parent company, The Breakers Investments BV. Alstom made an initial payment of USD75 million (approximately 53 million euros) to the selling shareholders. The remainder of the price will be calculated using a computation method agreed upon by both French and Russian parties and based on TMH operating results over a four-year period (2008-2011). Alstom will hold two seats on the TMH board of directors.

This signing culminates several years of partnership and intense collaboration between our two companies », said Patrick Kron, chairman and CEO of Alstom. Russia represents a key market for Alstom in our three businesses, and we are very proud that Transmashholding and its shareholders chose Alstom to help them modernize the Russian rail sector, he added.

Alstom and Transmashholding entered into a strategic partnership in 2008 with the objective of fully meeting the 1520 railway markets* needs for high-performing rolling stock. The companies are currently working on the joint development of the EP20 double-systems passenger electrical locomotive and the 2ES5 asynchronous mainline freight electrical locomotive. Employing Alstoms latest technology, the locomotives are designed at the TRTrans engineering centre, a joint venture of Alstom and TMH based in Novocherkassk. A second joint company dedicated to the manufacturing of rolling stock key-components will be established in the coming months.

In 2010, Russian Railways (RZD) awarded Alstom and TMH a contract for manufacturing 200 new-generation electric passenger locomotives (EP20), and Kazakh Railways (KTZ) has awarded a contract for 295 electric freight and passenger locomotives.

*The «1520» rail market designates the CIS countries where the track gauge is 1,520 mm, compared with the standard UIC gauge of 1,435 mm. This zone groups together mainly Russia and the States of the ex-URSS, the Baltic States, Mongolia and Finland. 

Alstom contacts

Philippe Kasse, Stéphane Farhi (Corporate)
Tel +33 1 41 49 29 82 /33 08
Karen Brouiller (Transport)
Tel +33 1 57 06 18 42

Investor relations
Emmanuelle Châtelain, Juliette Langlais
Tel + 33 1 41 49 37 38 


Transmashholding contacts
Directeur du service des relations publiques
Tel +7 495 660 89 50 (ext 5252)
Mobile + 7 903 793 03 96