FESCO completes acquisition of 50% share in M-Port Ltd for $90 million
FESCO Transport Group has officially announced the purchase of 50% share in M-Port Ltd (which owns 95.2% shares in OJSC “Commercial Port of Vladivostok”) for $90 million, FESCO’s press release reads. Upon successful obtaining of all necessary permits the parties completed all legal formalities and the acquired share was transferred to the balance of FESCO OJSC – the Group’s basic company.
Thus, the first stage of the transaction, after which FESCO will own 100% of M-Port Ltd, has been completed. As it was reported earlier, at the second stage FESCO will acquire the remaining 50% stake in M-Port Ltd. The agreed time horizon for the second part of the acquisition is within the next 3 years, the price is pre-agreed by partners as a formula, related to the port financial performance.
“Partnership of FESCO and VMTP will enable us to fulfill unique transport potential of the Far East with maximal efficiency. We are sure that integration of smoothly running infrastructure system - VMTP with strategic investor and provider of logistics solutions – FESCO will provide our customers with guarantees as regards even higher quality of service within shortest time for competitive prices,” Evgeniy Ambrosov, Director General of FESCO OJSC, said.
New Director General of M-Port Ltd is Vladimir Lelyukh, deputy Director General of Far East Shipping Company on legal issues.
Commercial Port of Vladivostok OJSC (VMTP) is a dynamically developing transport company of Russia. On October 10, 2007 the port will celebrate its 110 anniversary. Today, the port’s personnel exceed 3,500 people. 7 stevedoring companies operate at the berths of the port. They transship cargo and handle transport entering the port. In the first half of 2007, the port handled 2.047.3 million tonnes of cargo. Throughout the year it is planned to handle 4.192 million tonnes of cargo. Commercial Port of Vladivostok operates 17 berths including container, passenger, motor car specialized berths.
FESCO Transport Group is created on the basis of Far East Shipping Company - one of the largest and oldest transport companies in Russia, founded in 1880. The Group is Russia’s largest container operator. In 2006, total volume of container operations performed by all companies of FESCO Group amounted to 1.8 millionterritory of Russia (from the Baltic and the Black Seas to the Far East), Ukraine, Kazakhstan as well as states of EU, South-East Asia and Asia-Pcific region. TEU. Activities of FESCO Group cover the complete