TransContainer might cease to be a shareholder in FELB
MOSCOW. May 29 (Interfax) - The board of directors at railway operator OJSC TransContainer will decide on June 19 about the company's position concerning the selloff of shares in Far East Land Bridge Ltd (FELB), TransContainer in the statement.
According to the company's results for 2010 according to international financial reporting standards (IFRS), TransContainer became the owner of 10% in FELB after providing this company a six-month loan in euro. "In actuality, this was a way of buying shares in the company," TransContainer told Interfax.
In April of this year, TransContainer said that FELB's debt owed would be transferred to OJSC RZD Logistics, a subsidiary of OJSC Russian Railways (RZD).
In addition, the board will vote on signing an agreement to transfer debt between TransContainer, RZD-Logistics and FELB.
Far East Land Bridge is a railway container operator, which transports freight between CIS countries and European countries (Austria, Hungary, the Czech Republic, Slovakia, Poland, and Germany) and China's north-eastern provinces.
TransContainer currently operates more than 24,000 flatcars, and owns and operates around 60,000 large-tonnage container cars, as well as a network of terminals in Russia (at 46 stations) and in Slovakia. RZD owns 50% plus one of its shares, FESCO owns 21.1%, and the European Bank for Reconstruction and Development (EBRD) owns 9.25%.