Russia-based terminal operator services provider Global Ports Investments said it would purchase National Container Company (NCC) for USD 652 million. The acquisition would be paid for in cash and shares. The deal would pave the way for Global Ports to become Central and Eastern Europe's biggest operator of container terminals.NCC is a Russian container operator.
Under the terms of the deal, Global Ports would pay NCC USD 291 million in cash and issue USD 361 million new shares. The transaction would allow NCC to hold an 18% stake in Global Ports. The latter would also take on the debt of NCC valued at USD 916 million.
The transaction would allow Global Ports to own three more container terminals. The acquisition would enable the Russian seaport owner to ramp up its output to 2.52 million twenty-foot equivalent units. Asian from Russia, Global Ports also has other container terminals in the Baltic Sea as well as in Russia's Far East.
UralSib Capital Analyst Denis Vorchik said the premium paid by Global Ports for the acquisition was justified. "The lack of container assets in Russia justifies a premium that Global Ports paid. The company will gain a dominant position in Russia's Baltic basin," he told Bloomberg in a phone interview.
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