Support The Moscow Times!

Summa Reported to Buy FESCO

Investment and trading group Summa has agreed with businessman Sergei Generalov to buy control of transportation group FESCO for about $1 billion, an industry source familiar with the deal said Friday.

Summa, involved in renovating the Bolshoi Theater, building an oil terminal in Rotterdam and exporting Russian grain, is in negotiations to buy Generalov's 56 percent stake in FESCO.

"The deal is almost done, it's in the final stage," the source said, adding that it may be closed in June.

The deal, if consummated, would extend the logistical reach of Summa, an acquisitive group owned by Ziyavudin Magomedov that actively trades oil and is looking to branch into agricultural commodities.

FESCO's asset portfolio includes a seaport in Vladivostok and a shipping fleet, railroad company Russian Troika and 21 percent of state-controlled rail group Transcontainer.

The deal follows a slump in FESCO's earnings last year to $19 million despite 29 percent growth in revenues to $1.03 billion.

Generalov became a seller after failing to secure control over Transcontainer, whose majority owner, state-owned Russian Railways, asked the government last year to delay the sale of its stake due to poor market conditions.

FESCO announced last week that it had agreed to sell rail operator Transgarant to privately held Neftetransservis for a total consideration of $650 million.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more