SCM Agrees to Sell 33% Stake in UPTK

System Capital Management has signed an agreement to sell a 33% stake in UPTK to the Mariupol Investment Group, according to Interfax. UPTK is the main private shareholder of the Azovmash Holding, which has operating control over Azovzahalmash (AZGM: BUY) and Mariupol Heavy Machinery (MZVM: BUY). Mariupol Investment group said its strategy will be to develop new equipment, boost production of metals & mining equipment, and increase output of different types of wagons that have no analogues in the CIS. In order to consolidate the remaining 33% stake in UPTK, Mariupol Investment Group must negotiate with Vesprom. This consolidation of control by Mariupol Investment Group should be a boost for both AZGM & MZVM as it should help increase the companies’ transparency, reduce risks of conflict between shareholders and give both a more clearly defined development strategy.