UCLH might sell up to 30% of VBTH shipping group to other shareholders - paper
MOSCOW. July 22 (Interfax) - Russian billionaire Vladimir Lisin's UCL Holding might sell up to 30% of shares in Volgo-Balt Transport Holding (VBTH) to Rishat Bagautdinov and Vladimir Kasyanenko, who now control 20% of shares in the shipping group, national daily Kommersant reported on Monday, citing sources familiar with the negotiations.
The parties have agreed in principal to increase the minority shareholders' interest to at least a blocking stake, the only question is how to raise the financing for the deal, the paper said.
Talks have been underway for several months already. "There has been an offer since the spring. When the opportunity arises, the stake will be increased," the paper quoted a source close to the minority shareholders as saying.
VBTH declined to comment.
VBTH includes Lisin's shipping and shipbuilding assets: the Volga and Northwest shipping companies, V.F. Tanker, the Okskaya shipyard, the Paris Commune plant, passenger shipping company Vodohod and a number of other companies. The group carried about 15.5 million tonnes of cargo in 2012.
VBTH does not disclose consolidated results. Volga Shipping posted a net profit of 708 million rubles on revenue of 4.79 billion rubles in 2012; Northwest Shipping had a net profit of 49.4 million rubles on revenue of 4.07 billion rubles; and V.F. Tanker closed the year with a net profit of 722 million rubles on revenue of 3.3 billion rubles.
Lisin bought his stake in VBTH in 2008 from Bagautdinov, Kasyanenko and Viktor Olersky, who is now deputy transport minister. After joining the Russian government, Olersky put his stake under the trust management of his partners.
The 80% stake in the group was sold in 2008 for $180 million, valuing the whole company at $225 million. At the time, the parties did not rule out that in future the minority shareholders might increase their stake, Kommersant reported its sources as saying. The minority shareholders are involved in developing the company's strategy and decision making. Bagautdinov, for example, chairs the board of core company Volga Shipping.
After buying the 80% stake in VBTH, Lisin began an ambitious program to update the fleet, providing work for the holding's shipyards. A program to build ten RSD-44 dry cargo ships at a total cost of 4 billion rubles was completed in 2012, and 22 river-sea class tankers were built. Overall investment topped 10 billion rubles, and in July VBTH ordered 20 universal ships from the Okskaya shipyard. The expansion of the fleet has increased VBTH's value and it could now be worth over $300 million, so buying 30% of shares would cost at least $100 million, market players believe.
Universal Cargo Logistics Holding (UCL Holding) is an international transportation group that includes several major rail freight operators with a branch network throughout Russia, a number of stevedoring companies and several shipping companies, and a number of shipbuilding and other shipping assets. The group has three divisions: UCL Rail, UCL Port and VBTH.
