“Delo” Group owned by Sergey Shishkarev finalized purchase of 30.75% shares of port holding Global Ports for estimated $250 mln from “N-Trans” owned by Nikita Mishin, Konstantin Nikolaev and Andrey Filatov. According to terms of the deal, Global Ports and stevedore assets of “Delo” Group “DeloPorts” will be managed separately and continue competing on the market. The assets had to be isolated from each other on the level of Board of Directors. The salespeople will invest money in own projects.
On Thursday “Delo” Group of Sergey Shishkarev and “N-Trans” of Nikita Mishin, Konstantin Nikolaev and Andrey Filatov closed the deal on “Delo” purchase of 30.75% of the large Russian stevedore “Global Ports”. The Company announced the deal at the end of 2017, on February 16th Federal Ani-Monopoly Service approved the deal.
Sergey Shishkarev told ‘Kommerstant” that the price of the deal “is a bit less than quarter of a billion dollars” without disclosing the precise number, noting accept that “the deal is closed on market conditions”.
“Delo” financed the purchase with own funds, DeloPorts bonds issue (stevedore assets of Deo Group) and credit line of Sovkombank.
Global Ports operates five container terminals in Russian Federation and two in Finland. IAS-based earnings in 6 months of 2017 – $162.5 mln, EBITDA – $97.3 mln, net loss – $11.9 mln (against last year’ $113.4 profit). Net debt – $1.03 bln. 30.75% of shares are owned by Danish A. P. Moeller-Maersk via Netherlandic APM Terminals B.V., Cyprus Ilibrinio Establishment Limited and Polozio Enterprises Limited own 9% each. “N-Trans” owned shares in Global Ports through Transportation Investments Holding Ltd (TIHL).
“DeloPorts” – is the key port asset of Delo Group includes NUTEP container terminal, TOS bunker company, KSK grain terminal. “DeloPorts” consolidated proceeds in 2016 – 7.8 bln rub. “Delo” also owns ship-repair, railway and grain assets.
Terms of the deal is free of obligation to offer buy-outs to other shareholders, relations with Global Ports strategic partners remain the same: “Delo” Managing Company joined the shareholder agreement with APM replacing TIHL. Partners will develop a new development strategy for Global Ports “in perspective by autumn 2018” starting step by step in May 2018. The strategy may stipulate diversification by freight nomenclature “for example Ust-Luga develops as industrial cluster with strong export orientation”.
“Delo” Managing Company will operate “DeloPorts” and Global Ports separately. There will be a ‘great wall’ preventing sensitive information flow, says Anton Chertkov, member of the Board of “Delo” Managing Company. This was the reason for management rotation: members of DeloPorts Board of Directors will not be able to be members of Global Ports Board and visa-versa. But the agreement allows Sergey Shishkarev to be member of both Boards and participate in management of the companies.
According to “N-Trans” former shareholders intend to invest the money in personal projects in different spheres. Andrey Filatov plans to invest in a PSA-project of gas field “25-years independence” in Uzbekistan, Nikita Mishin will continue supporting Russian education via “Dar” Foundation, – says the company.
FAS approved the deal with certain conditions including making Global Ports switch to ruble-based economically-justified tariffs 30 days after closing the deal. They should not be higher than the prices of 2013-2014 adjacent for inflation. The Group says that them and “Delo” are cooperating with FAS on this issue, given the settlement agreement between Global Ports and FAS signed in December 2017.
Mikhail Burmistrov, Head of “Infoline-Analytics” outlines that given the unstable market situation due to sanctions the deal without discount on foreign currency exposure is even more profitable for the seller than in December. He says that the period of stable ruble is most likely over and FAS which insists on port tariffs being transferred to rubles, will decrease marginality of stevedores and their foreign exchange exposure in debt management