Bruce Barnard, Special Correspondent | Jul 12, 2012 9:53AM EDT
Russian private rail freight operator Globaltrans is aiming to raise around $450 million from a share sale to fund potential acquisitions in the nation’s rapidly consolidating domestic market.
Globaltrans, which listed on the London stock exchange in May 2008, will issue Global Depository Receipts in a price range of $16 to $17.25 per share to raise $400 million.
An additional $50 million will be raised from the sale of a stake held by N-Trans, a private transport group.
Under an overallotment option underwriters can purchase a further $50 million of GDRs at the offer price.
“In a [Russian] railcar market that is ripe for consolidation there are clear signs that major companies are looking to outsource their freight rail transportation to an operator of Globaltrans’ quality that can serve all their needs,” said CEO Sergey Maltsev.
Globaltrans’ railcar fleet has increased by 47 percent to 64,000 in less than a year, driven by a buying spree in the final months of 2011 and the $540 million acquisition in April of the railcar business of iron ore miner Metalloinvest.
Globaltrans is tipped as a potential bidder for other rail businesses being disposed by companies focusing on core operations, including Russia’s largest steel maker Evraz, which said it is mulling the sale of its transport unit Evraztrans.
Separately, the company said first quarter adjusted revenue rose 5.3 percent from a year ago to $304.9 million and adjusted earnings before interest, tax, depreciation and amortization were up 25.1 percent at $153.3 million.
Contact Bruce Barnard at brucebarnard47@hotmail.com.
