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Fesco purchases Vladivostok port operator for US$180m


source:schednet author: time:2007-08-23  

Russia's Fesco Transport Group has finalized a deal worth US$180 million with Commercial Port of Vladivostok (VMTP) for it to fully own M-Port, which is the operator of the Port of Vladivostok.

According to a Fesco statement, the transaction is structured in two stages with Fesco initially buying out the 50 per cent share of M-Port Ltd held by Magnitogorsk Metallurgical Plant for $90 million.

Fesco said the acquisition would be funded from the proceeds of the company's recently completed additional share issue.
The second stage of the deal will see Fesco buying the remaining 50 per cent of M-Port Ltd within the next three years.

"In addition, partners in the transaction have agreed on the possibility and terms at which current shareholders in the Commercial Port of Vladivostok may become shareholders in Fesco," the statement added.

Once the deal is completed the Fesco Group will have port facilities in all three major marine gateways of Russia, including in the Baltic, Black Sea and the Pacific.

According to Fesco chairman of the Board Siman Povarenkin: "This acquisition is much more to Fesco than a financial investment. This is a long-term strategic alliance with one of the key ports in the Russian Pacific. The port, we are sure, has a bright future, and the alliance between Fesco and VMTP would help release obvious synergies.

"We will actively work together with our new partners on further developing the port, build new terminals, bring more cargo."
The statement pointed out that the port will be co-managed by Fesco and the existing management team.

VMTP CEO, Vyacheslav Pertsev, added: "We have common and converging views with Fesco on the strategy of port development. An important element of our co-operation will be a better integration of the port into Fesco intermodal logistical solutions. Together, we will offer clients even more attractive and efficient service in such areas as container operations, cars transportation, to name just a few".


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