NCSP Group has announced that it is not interested in buying Novomorsnab, a subsidiary of Novorossiysk Shipping Company (Novoship), the NCSP Group official said on Monday.
The interim CEO of NCSP Rado Antolovic told reporters today that the Group was considering the deal to boost the development of Novoroslesekport (part of the NCSP Group), since Novorosmorsnab had two land plots, one of which is located just 50 m from the moorage wall. But the deal was preconditioned by the acquisition of the second plot encompassing 20 hectares and located at some distance from the berths.
Having weighed up the risks of the plots acquisition the Group concluded that the risks are too high, namely the legal risks, and the deal price was also high enough. Besides, the sites development would require huge investments.
However, Rado Antolovic did not rule out that in the future the NCSP Group may again revert to the deal.
Novorossiysk Commercial Sea Port is the largest Russian company and ranks third operator in Europe in terms of cargo throughput. The NCSP Group incorporates the following stevedore companies: PJSC Novorossiysk Commercial Sea Port, PJSC Novorossiysk Grain Terminal, OJSC Novorossiysk Shipyard, PJSC Fleet of NCSP, OJSC NovorosLesExport, OJSC IPP, Baltic Stevedoring Company Ltd. and PJSC Primorsk Trade Port Ltd. Novoport Holding Ltd, which is beneficially owned by Transneft and Ziyavudin Magomedov (Summa Group), holds a 50.1% stake in PJSC NCSP. Consolidated revenue according to IFRS for the nine months of 2011 totaled $782 million and EBITDA of $404 million. NCSP shares are traded on Russia's MICEX exchange (NMTP) and on the London Stock Exchange in the form of GDRs (NCSP). In 2011, cargo traffic at NCSP Group totaled 157 million tons.
Novomorsnab is part of Novoship Company and handles exported, imported and transit general cargoes.
"Novorossiysk Shipping Company (Novoship, member of SCF Group) is Russia's largest shipping company in the Black Sea. The company's fleet comprises 51 modern vessels of total deadweight exceeding 4.5 million tons. The average age of Novoship’s tanker fleet is 6.6 years and its market value is approximately $1.9 bn.