SCM Restructures Ownership at Druzhkivka Machinery

Ukrainian News reported that Cyprus-based Ukrainian Machine Building Holding replaced SCM as the holder of 65.26% of shares in Druzhkivka Machinery (DRMZ: BUY). Inna Perepelytsya: The transfer of the stake confirms our expectations that SCM is preparing to create a machine building holding (see our Oct. 29, 2007 report). It looks like UMBH will serve as an umbrella structure; other candidates for inclusion are Dongirmash (DGRM: N/R) and Svitlo Shakhtarya (HMBZ: N/R). SCM will most likely take this holding public in the mid-term, thus we expect Druzhkivka to improve its transparency in the run-up to IPO.