Motor Sich to Be Included in Russian Engine Holding?

According to Interfax, the Vice Minister of Industry & Energy of Russian Federation, Denis Manturov announced that it is planning to establish an engine manufacturing holding. The holding is to be set up in nine months and will include Russian NPO Saturn, Ufa Motors, and complexes in Perm and Samara. Manturov also said that foreign companies could be included, such as Ukrainian Motor Sich (MSICH: BUY). In other news, it was reported yesterday that Motor Sich acquired a 29.95% stake in airplane and spacecraft producer Pervomaysk Mechanic Plant (Kharkiv). Inna Perepelytsya: This news from the Vice-Minister along with the previous message from Minister of Minister of Industry and Energy of Russian Federation about helicopter engine production in Russia (see our February 8 note) seem to confirm strong Russian interest in Motor Sich. We maintain our forecasts and BUY recommendation on the stock.