Ukraine conglomerate to buy 25% of aerospace group from Chinese investors

DCH had signed an agreement to buy a 25% stake in national aircraft engine maker Motor Sich from Chinese investors.

  
Image used for illustrative purpose. Close-up of airplane at airport runway.

Image used for illustrative purpose. Close-up of airplane at airport runway.

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KYIV - Ukrainian privately-owned conglomerate DCH told Reuters on Wednesday it had signed an agreement to buy a 25% stake in national aircraft engine maker Motor Sich from Chinese investors.

"In accordance with the agreement with Chinese partners, we will acquire more than 25% of shares of Motor Sich," DCH told Reuters in a statement.

Chinese investors, represented in Ukraine by Skyrizon Aircraft Holdings Limited company, last week announced a cooperation deal with DCH but they did not give details.

Motor Sich severed ties with Russia, its biggest client, after the annexation of Crimea and uncertainty over its future ownership has held up efforts to find new markets.

The DCH deal needs approval from Ukraine's national regulator, the State Antimonopoly Committee.

Skyrizon holds around 80% of Motor Sich though several foreign companies. The remainder is held by small shareholders.

Last year, the Antimonopoly Committee started an investigation into Skyrizon's stake in Motor Sich.

The Committee spokeswoman told Reuters on Wednesday that the regulator was continuing this investigation.

DCH, owned by Ukrainian businessman Oleksandr Yaroslavsky, said the regulator had 135 days at most to make its decision on its plan to buy 25% of Motor Sich.

"We will seek fairness and protection of our investments in court by all legal means," DCH said.

Skyrizon was not immediately available for comment.

(Reporting by Natalia Zinets. Editing by Jane Merriman) ((matthias.williams@thomsonreuters.com;))

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