TSL Finance buys more than 50% stake in Dniprovahonmash

TSL Finance Limited (Cyprus) was permitted by the Antimonopoly Committee of Ukraine to acquire more than a 50% stake in Dniprovahonmash (DNVM), according to Ukrainian News yesterday. Dniprovahonmash is a freight railcar producer; in 2008 it posted net revenue of UAH 1.4 bln and net income of UAH 165.4 mln. Yegor Samusenko: In our view, this transaction confirms rumors that TAS Group is in the process of selling Dniprovahonmash. According to our estimates, TAS Group currently controls 92% of the company. Though buyer is not clear, the use of an offshore structure might indicate that the buyer is a local group. TAS’ primary beneficiary Serhiy Tigipko said in July that he planned to sell off a substantial portion of his assets, including Kryukiv Wagon (KVBZ), in connection with his decision to stand for president of Ukraine in the January 2010 elections.