GLPR22 Oct 2012 08:50
Acquisition of remaining 25% stake in Vostochnaya Stevedoring Company
Global Ports Investments PLC ("Global Ports", "the Company" and together with its subsidiaries and joint ventures, "the Group"), (LSE ticker: GLPR) announces that the Group 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.
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.