Russia’s Summa trading and investment group is reported to be close to agreeing on a $1 billion deal to take control of Fesco, the owner of the country’s largest ocean container carrier.
Summa is negotiating to acquire Russian businessman Sergei Generalov’s 56 percent stake in Vladivostok-based Fesco and a deal could be closed in June, the Kommersant business daily reported.
Generalov and Kommersant have not commented on the report, which triggered a 23 percent surge in Fesco’s share price in Moscow.
Fesco is active in container shipping, logistics and rail freight and operates a container terminal in the port of Vladivostok in Russia’s Far East.
The company, which had revenues of $1 billion in 2011, has been selling assets since it failed to take control of Transcontainer from state-owned Russian railways. It has a 21 percent stake in the rail freight operator, which is quoted on the London stock exchange.
Last week Fesco said it had agreed to sell its Transgarant rail unit to Neftetransservis, a privately-held transport firm, for $650 million. It is reported that Summa will now take over Transgarant as part of the deal.
In July 2010 Fesco sold a 50 percent stake in National Container Company, Russia’s largest container terminal operator, to co-owner, oil trader First Quantum, for $900 million.
Summa, a diversified holding company with $10 billion annual revenues, is headed by Russian billionaire Ziyavudin Magomedov. It has interests in ports, including a stake in Novorossiisk Commercial Sea Port on the Black Sea, telecommunications, construction, engineering and oil, gas and grain trading.