OREANDA-NEWS. January 19, 2011. The next stage of the corporate restructuring of Azovmash, one of the largest industrial producers in Ukraine, has been completed, according to the announcement posted on the company site on Jan 17. Currently, all machinery assets are consolidated into Wessanen holding company (Cyprus) that will control Azovmash, Azovzahalmash (AZGM), Mariupol heavy machinery plant (MZVM), Mariupol thermal plant, Poltavachimmash, and two R&D institutions.

Millennium Capital considers the news as POSITIVE for MZVM. As has been reported earlier, the management of AZGM and MZVM had intended taking a joint decision to lease out the MZVM’s property complex to AZGM, which immediately led to the MZVM’s stock price slump. Although Millennium Capital does not see any positive stock dynamics in the short run, the consolidations lays grounds for the company production process stability in the long run. Besides, it may also improve the transparency of its business, strengthen its corporate culture and increase the company’s value. All of the above creates an opportunity for investments with a 1.5-2 year horizon.