Globaltrans Investment PLC (the "Company" and together with its consolidated subsidiaries "Globaltrans" or the "Group"; LSE ticker GLTR) today announces the acquisition of an additional 10% economic interest in LLC BaltTransServis ("BTS") from a minority shareholder, increasing the Group's effective controlling interest in BTS from 50% to 60%. The Board of Directors of Globaltrans approved a payment of USD 74.5 million for the 10% economic interest in BTS. The transaction was closed on 10 November 2011.
BTS is a leading private freight rail transportation company in Russia, operating primarily in the oil products and oil transportation segment, a market that has proven resilient despite recent economic pressures. BTS has extensive expertise and a strong position in the operation of locomotives, and is currently operating more than 90% of the Group's locomotives.
BTS will be the key platform for the Group to increase its presence in the locomotive traction market after its liberalisation which is expected to take place in 2012.
Sergey Maltsev, CEO of Globaltrans Investment PLC, said: "We have successfully integrated BTS into Globaltrans' business model since we acquired an initial 50% stake at the end of 2009. BTS has delivered outstanding financial results and provides us with good dividend flow which underpins our ability to expand our business. With more than 7 years experience in the operation of locomotives, BTS has the right skills to help progress the Group into the next phase of its strategic development as it moves further into the area of locomotive
traction."
BTS is a leading private freight rail transportation company in Russia, operating primarily in the oil products and oil transportation segment, a market that has proven resilient despite recent economic pressures. BTS has extensive expertise and a strong position in the operation of locomotives, and is currently operating more than 90% of the Group's locomotives.
BTS will be the key platform for the Group to increase its presence in the locomotive traction market after its liberalisation which is expected to take place in 2012.
Sergey Maltsev, CEO of Globaltrans Investment PLC, said: "We have successfully integrated BTS into Globaltrans' business model since we acquired an initial 50% stake at the end of 2009. BTS has delivered outstanding financial results and provides us with good dividend flow which underpins our ability to expand our business. With more than 7 years experience in the operation of locomotives, BTS has the right skills to help progress the Group into the next phase of its strategic development as it moves further into the area of locomotive
traction."