TAS to Establish Railcar Manufacturing Holding, Take it Public in 2-3 Years

TAS Group plans to structure railcar manufacturing assets into a single holding, with a view toward an IPO on the London Stock Exchange in 2-3 years, Serhiy Tigipko, group co-owner said yesterday. The holding will be anchored by Kryukiv Wagon (KVBZ: HOLD), where TAS holds 25%, and also include Dniprovahonmash (DNVM: BUY), 98% controlled by TAS, and Kremenchuk Steel Casting Works (KRST: N/R). Yesterday Tigipko said that TAS and Privat jointly acquired several minority stakes in Kremenchuk Steel Casting, raising their overall ownership to 95%. Inna Perepelytsya: The announcement meets our expectations of consolidation between Kryukiv Wagon and Dniprovahonmash (see our January 28 report). We believe both railcar makers stand to benefit from closer ties to Kremenchuk Steel Casting Works, helping to secure casting deliveries, which we forecast to be insufficient to the CIS railway industry until 2009.