NCSP Group (LSE: NCSP; MICEX: NMTP) reports that the Board of Directors of PJSC “NCSP” on 17 February 2012 will decide on the conversion of 2.68% treasury shares, which were bought from investors as a part of the acquisition of LLC “Primorsk Trade Port”, into depositary receipts. If approved by the Board, the conversion will take place within the framework of the registered program of Global Depository Receipts (GDRs), the Group's news release said.
The Group's Deputy CEO & Chief Legal Officer Peter Maximov comments: “Russian legislation requires NCSP to either sell the shares that are on the company’s balance within 12 months or cancel them. The Company believes that the current market conditions are not optimal for a sale. At the same time, sale of shares in the form of GDRs is more economically justified and the Company has sufficient headroom under the existing GDR program. Upon our request an international law firm confirmed that the conversion allows to avoid accelerated sale as well as cancellation, which the company wants to take advantage of”.
About NCSP Group
Novorossiysk Commercial Sea Port is the largest Russian port operator and the 3rd operator in Europe in terms of cargo turnover. NCSP shares are traded on Russia's MICEX exchange (NMTP) and on the London Stock Exchange in the form of GDRs (NCSP).
50.1% shares of PJSC "NCSP" belongs to Novoport Holding Ltd, beneficiaries owners of which are JSC “Transneft” and Ziyavudin Magomedov (Summa Group). NCSP Group consolidated cargo turnover in 2011 totaled 157 million tons. Consolidated revenue according to IFRS for the nine months of 2011 totaled $782 million and EBITDA of $404 million. NCSP Group combines the following stevedore companies: OJSC Novorossiysk Commercial Sea Port, PJSC Primorsk Trade Port (since 2011), PJSC Novorossiysk Grain Terminal, OJSC Novorossiysk Shipyard, PJSC Fleet of NCSP, OJSC NLE, OJSC IPP, and Baltic Stevedoring Company Ltd.