OAO Gomselmash will be transformed into a holding company incorporating five other enterprises.
The decision was formalized by Resolution No.670 signed by the Council of Ministers on 11 July 2014.
The new holding company will consist of OAO Gomselmash and five other enterprises, including Gomel Foundry and Standards Works, Gomel Factory of Special Instruments and Technological Equipment, Combined Harvesters Research Center, Svetlogorsk Mechanical Engineering Plant and SP-Stroi. Nearly 911,600 state-owned shares of these companies are to be transferred in the form of contribution in kind to the share capital of OAO Gomselmash. The transfer should be completed by 26 September 2014.
The Industry Ministry and the State Property Committee will supervise the additional issue of shares equal to the amount that will be transferred to the share capital of OAO Gomselmash. The new issue should be accepted as state property.
Spokesman for the Industry Ministry Sergei Shalai told BelTA that the holding company will be established in line with Decree No. 113 dated 27 February 2012 “Concerning the establishment and operation of holding companies and state-run associations of the Industry Ministry”. The document is meant to ease and speed up the establishment of holding companies and to facilitate their operation.
“The transfer of the contribution in kind makes sense, because the state-owned shares will be transferred to the share capital of the management company that will get the necessary leverage to manage subordinate companies,” the Spokesman said. He added that it will be easier for the management company to take part in the operation of subordinate companies, make decisions concerning the management of property and finances, conduct a HR policy, hire and dismiss top managers. It will also be easier to pursue a coordinated investment policy, upgrade production facilities and promote research and development.
Sergei Shalai emphasized: “The transfer of shares into the share capital of the management company will augment its assets and enhance its investment appeal for foreign investors”.
OAO Gomselmash was established in 2013 on the basis of the Gomselmash factory founded in 1930. Gomselmash is one of major agricultural equipment manufacturers in the CIS and Europe. It produces self-propelled and tractor-drawn fodder harvesters, mowing machines, harvesters, detachable agricultural equipment and potato and beet harvesters. All in all, the enterprise produces over 40 different kinds of agricultural machines.