Tuesday, September 11, 2012
APM invests $860 million stake in Russian ports deal
APM Terminal will purchase a 37.5 percent stake in Russia's Global Ports for $860 million from N-Trans to establish a presence in the Russian cargo market. APM will run the company equally with N-Trans, each owning 37.5 percent, with 25 percent being listed in London.
The agreement, in which APM Terminals will pay $840 million in cash and owe $20 million, was struck on the heels of Russia's acceptance into the World Trade Organization in August.
This is the largest direct foreign investment in Russia's transportation sector to date, APM chief executive Kim Fejfer told Reuters Monday. "We have now created a platform with Global Ports that will be our strategic partnership in the coming years," he said. "We expect long-term growth and, of course, we will seek to expand where demand allows."
Global Ports, which raised $588 million in a London initial public offering last year, owns container terminals in Russia, on the Pacific and Baltic Sea coasts and in Finland
For more of the Reuters story: reuters.com
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