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The Russian Railways recently approved the results of a closed bid for the right to buy a 50 percent stake in United Electrical Engineering Plants (Elteza) — the “first successful example” of the privatization of a Russian Railways subsidiary, according to the railroad.

Established by the Russian Railways in April 2005, Eletza designs and manufactures rail signaling equipment and automatic and remote train control systems. The subsidiary operates eight plants and sells about 94 percent of its products to the Russian Railways.

The railroad invited Alstom, Thales, Bombardier Transportation, Finmeccanica and Siemens to submit bids on the 50 percent stake (minus two shares) purchase. Bombardier and Siemens submitted bids, and a tender commission judged Bombardier’s proposal as the most financially and technically viable. The winning bid includes the transfer of manufacturing technology for a range of microprocessor devices and the introduction of Elteza products to new markets.

According to the bid’s terms, Bombardier and the Russian Railways must enter a share purchase agreement to conclude the deal by the year’s end. The transaction is subject to approvals by the railroad’s board and Russian government.