30 Dec 2010 19:17

FAS okays NCSP acquisition of 100% Primorsk port shares

MOSCOW. Dec 30 (Interfax) - Russia's Federal Antimonopoly Service (FAS) has issued the go-ahead for OJSC Novorossiysk Commercial Sea Port (NCSP) to acquired 100% of the stock in LLC Primorsk Commercial Port in the Leningrad region, the FAS announced.

The decision was made Thursday on NCSP's application of September 24.

NCSP is currently in the process of merging with Primorsk Trade Port, in which it is purchasing 100% of shares for $2.153 billion. NCSP will buy the shares from a Omirico, a company representing the interests of Transneft and companies owned by Ziyavudin Magomed. Omirico will in turn acquire 50.1% of shares in Novoport Holding Ltd, a 100% subsidiary of Kadina, which is currently owned by Alexander Ponomarenko, Alexander Skorobogatko and Arkady Rotenberg. After the deals are transacted, Transneft and its partner will share ownership of 50.1% of NCSP on a 50-50 basis, a source familiar with the terms of the deal told Interfax.

NCSP will finance part of the deal with a seven-year loan of $1.95 billion it is raising from Sberbank Russia . The interest rate on the loan might be floating (three-month LIBOR+ up to 7%) or level (up to 9%). Aside from the bank loan, NCSP will use internal funds.