Rosatom and TMH sign term sheet for TMH-Energy Solutions assets transaction
On the sidelines of the XXIV St. Petersburg International Economic Forum, Evgeny Pakermanov, President of Rusatom Overseas, and Kirill Lipa, CEO of Transmashholding, in presence of Kirill Komarov, First Deputy General Director for Global Business Development of the State Atomic Energy Corporation “Rosatom”, and Andrey Bokarev, President of Transmashholding, have signed term sheet for transaction regarding assets incorporated under TMH-Energy Solutions company.
The parties intent to close the deal by the end of 2021 subject to results of due diligence and assets evaluation. According to the agreement, Rusatom Overseas, a subsidiary of Rosatom State Corporation, will become a shareholder of TMH-Energy Solutions. Rusatom Overseas and Transmashholding are currently successfully cooperating on development of railway passenger service based on hydrogen fuel cells under the agreement with the Russian Railways and the Sakhalin regional government signed on the Eastern Economic Forum on September 4th, 2019.
Under the deal terms Transmashholding will retain a majority stake in TMH-Energy Solutions, based on which the parties are considering to jointly pursue business in alternative fuels and energy solutions for transportation, enhance product portfolio and imports substitution in diesel engine manufacturing, implement projects in distributed and backup power generation, develop the hydrogen energy infrastructure.
Rosatom State Corporation being a strategic partner and investor of TMH-Energy Solutions can support it with technological and industrial competencies of the nuclear industry and significantly expand its marketing channels and foreign sales.
Joining efforts of Rosatom State Corporation and Transmashholding will facilitate creating conditions for emerging a new energy pattern, strengthening technological sustainability of the Russian Federation and expanding its high-technology exports. Potential market volume for the envisaged joint business shall exceed 200 billion rubles within the next decade.
“It is an important step for Rosatom towards development of new businesses. We see significant opportunities and joint prospects with Transmashholding, and we are committed for the future cooperation and implementation of advanced solutions for various sectors of the economy of Russia. Upon this, it is important that we are going to introduce and develop products which are currently not being made in our country,” stated Kirill Komarov.
“There is a growing demand for integrated energy solutions,” Kirill Lipa says. “That is why in 2020 TMH incorporated a dedicated entity bringing together respective assets for addressing requirements of the market. Its value creating potential has ensured interest and participation of our partners from Rosatom.”