Ecology

20:23, 21.08.2007 | Far East Russia

Russia's Far Eastern Shipping Co has struck a deal to buy the operator of Vladivostok Commercial Sea Port, including a stake once held by steel maker MMK , the company said on Monday.

FESCO, Russia's biggest container shipping firm, said it would buy the 50 percent stake in port operator M-Port previously held by MMK for $90 million by Sept. 17.
FESCO Chairman Siman Povaryonkin told reporters the company would acquire the rest of M-Port, which controls 95.2 percent of the port on Russia's Pacific coast, over three years with a combination of cash and shares.
"The acquisition price will be fixed by the partners in advance and will take into consideration the company's financial results at the moment the deal is concluded," FESCO said in a statement, referring to the second part of the deal.
M-Port's management bought the 50 percent stake from MMK as the steel maker eyes markets other than China for its exports.
FESCO is controlled by Industrial Investors, led by former Energy Minister Sergei Generalov, with a 64 percent stake. It has also sold a stake to Swedish fund manager East Capital.
The company, which has a relatively small free float, has said it plans a fully fledged public offering of stock after Russia holds a presidential election in March 2008.