Investment and trading company Summa closed a deal to buy transport group Fesco, bringing GHP Group as a minority shareholder to the asset, Summa said Friday.
Summa agreed to buy businessman Sergei Generalov’s 56 percent in Fesco in June, and Summa’s president, Alexander Vinokurov, said at the time that it would make an offer to minority shareholders.
Vinokurov indicated at the time that Summa ultimately wanted to buy 70 percent of Fesco.
It is unclear how big a stake Summa currently holds in Fesco.
Owned by tycoon Ziyavudin Magomedov, Summa is partly backing the purchase with $800 million of financing provided by Goldman Sachs, ING and Raiffeisen Bank.
GHP, a financial group with a focus on wealth management, real estate and direct investments, among other businesses, is to get a minority stake in Fesco, Summa said. It did not provide other details.
The purchase is Summa’s latest move into Russia’s ports and rail sector, viewed as a high-growth opportunity by business tycoons and investors because of its importance in carrying Russia’s valuable metals and grain exports out of the country.
Fesco’s portfolio includes 21 percent of state-controlled rail group Transcontainer. The Russian government has said it wants to further privatize Transcontainer, but it is not yet clear how much will be put on the auction block or when.
Summa’s assets include Novorossisk Commercial Sea Port. It agreed to buy a 50 percent-minus-one-share stake in state grain trader United Grain Co. earlier this year.
Related articles:
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
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 every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
