Global Ports announces aquisition of remaining 25% stake in VSC
Global Ports Investments PLC ("Global Ports", "the Company," or "the Group"), (LSE ticker: GLPR) announced that the Group has entered into a sale and purchase agreement with DP World Limited (“DP World”) to increase the Group’s ownership interest in Vostochnaya Stevedoring Company LLC (“VSC”) from 75% to 100%. The transaction values the 25% stake in VSC being acquired at USD 230 million, the Group press release said.
VSC, based in the port of Vostochny, is the largest container terminal(1) in the Far East of Russia and one of the key gateways for Russian container transport. The terminal can expand its capacity fourfold on its current site and in the first half of 2012 it recorded a year-on-year increase in container throughput of 18%.
Funding for the transaction will be provided in the form of an unsecured loan by Transportation Investments Holdings Limited (“TIHL”), the Group’s largest shareholder. The loan will carry an interest rate of 3-month USD LIBOR +2.0%.
The transaction is expected to close this week.
Nikita Mishin, Chairman of Global Ports, commented: “This investment underlines our continued belief in the strong growth prospects of the Russian container market. Taking full ownership of what is already an excellent asset and one that has the potential to quadruple its capacity, is a strategically important step for the Group and is in line with our stated intention to pursue further growth in Russia and the CIS. DP World has proved to be a reliable partner and we are happy with the results we have been able to achieve together in the development of this port.”
