SCM Considering Selling Stakes in Azovmash

According to the newspaper Delo, System Capital Management is considering selling the 33% stake it holds in Ukrainian Industrial and Transport Company, which controls 50% of Azovmash. Azovmash, in turn, has stakes in two Mariupol-based machine building companies: 26.2% in Azovzahalmash (AZGM: BUY) and 50% in Mariupol Heavy Machinery (MZVM: BUY). Delo said that SCM refused to comment on this news, but SCM said that it is examining different ways to participate in UITC. Inna Perepelytsya: If SCM sells its shares in UITC, it will still hold at least 18% in Azovzahalmash. We are currently seeking clarification from the parties involved. Without more details, we confirm our targets and recommendations for the stocks.