Abramovich structures will buy Nakhodka Port for $354,4 million

Roman Abramovich
Roman Abramovich

Evraz signed an agreement to sell 100% of the share capital of its subsidiary JSC “Evraz Nakhodka commercial sea port” to Lanebrook Limited, the beneficiaries of which are Roman Abramovich, Alexander Abramov, Alexander Frolov and Eugene Shvidler. This is stated on Evraz website.

The report notes that the transaction amount is $354,4 million. But the deal is subject to approval by the independent shareholders, as Lanebrook owns of 63.79% of the shares of Evraz and is considered a related party. According to British law it is considered a “related party transaction”. Meeting of shareholders is scheduled for 23 may 2017, the report said.

In addition, as part of the transaction, Evraz and Nakhodka port sign an agreement on transshipments, under which the company agreed to supply and the port to handle the cargo (coal and metals) “in a certain volume and under certain tariffs for 5 years.”

In March, the President of Evraz Alexander Frolov has confirmed the company’s desire to sell the Nakhodka subsidiary in the port “Evraz NMTP”. To buy the terminal in the port were ten candidates among whom were named the former Governor of Primorsky region Sergei Darkin, the former co-owner of Evraz Alexander Katunin, the co-owner of “Novaporta” Roman Trotsenko, “Summa” of Ziyavudin Magomedov, Kuzbassrazrezugol, Global Ports, GK “Delo” of Sergey Shishkarev, as well as companies from Kazakhstan and China.

“Evraz NMTP” was estimated in the $275-300 million range. One of the candidates the port at $261 million, and the remaining contenders offered more than $290 million.

As stated on the website of the company, “Evraz Nakhodka commercial sea port” is one of the largest stevedoring companies in the Far East of Russia. In 2015, the total turnover of “Evraz NMTP” was 9.2 million tons. “Evraz NMTP” has 15 cargo berths and one auxiliary berth for port fleet, whose total length is 3.5 km. The berths are universal and able to accept vessels with a draught of 11 m, length 230 m, width 32 m. Currently the port has the ability to accept simultaneously 15 vessels on its piers and handle more than 1,500 large vessels a year.

2 Comments

  1. It’s been said that net income from the deal will be $295 million, and significant portion of that will go to Evraz debt reduction. In 2016, the port handled about 10 million tons of cargo with a $44 million net profit. The company’s revenue for 2016 was $95 million. That’s a great asset! Where were other significant reasons for the deal.

    The main clients of the port are Evraz itself (about 66% of goods) and coal producer Sibuglemet (22%).

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