Arconic Corporation (NYSE: ARNC) has completed the sale of 100 percent of its Russian operations to Promishlennie Investitsii LLC, the majority owner of VSMPO-AVISMA Corporation, for cash proceeds of $230 million.
The transaction closed after Arconic received all required approvals, resulting in the receipt of $230 million of cash consideration for all of the Company’s Russian assets. Cash held in Russia was not available for distribution to the parent company because of litigation initiated in March 2020 by the Federal Antimonopoly Service of The Russian Federation. Arconic sold the entities that were subject to the FAS restrictions and therefore considers its involvement in the FAS lawsuit to be resolved as a result of the divestiture.
Tim Myers, Chief Executive Officer, said, “The assets of our Russian business have been restricted since prior to our emergence as a standalone company in April 2020. Operating in Russia only became more difficult and our ability to operate going forward became increasingly uncertain in light of the current geopolitical environment. This transaction supports our investments in future returns to our shareholders. I want to thank the remarkable team at our Russian operations that kept the facility running well through these most difficult circumstances.“