Transneft gained control of the Novorossiysk Sea Trade Port (NCSP). The company redeemed the arrested Ziyavudin Magomedov’s share in the joint venture Novoport Holding, which owns 50.1% of the port, from the Summa group. The amount of the transaction, the approval of which was granted by the FAS at the end of February, amounted to $ 750 million. In addition, Transneft may still receive unpaid port dividends on the Summa package.
Transneft acquired 25% of the largest in Russia Novorossiysk Sea Trade Port from Summa Group, representatives of the companies said. Thus, the monopoly gained control over the largest stevedore in the Russian Federation. Transneft and Summa through the joint venture Novoport Holding Ltd own 50.1% of NCSP on a parity basis, another 10.5% is controlled by the monopoly independently through Transneft Service, 20% of the port is owned by the Federal Property Management Agency, another 5.3% by Russian Railways.
In Transneft, they referred to the decision of the board of directors dated October 8, at which a decision was made to increase Transneft’s stake in the NCSP Group to 60.62%. The deal was closed by acquiring a 100% stake in Novoport Holding, a joint venture owned by Transneft and Summa Group on a parity basis and controlling 50.1% of NCSP. Financing in the amount of $ 750 million was made at the expense of borrowed funds, it will not affect the increase in the total debt burden. Earlier this year, Transneft attracted a large credit line from Sberbank. A Kommersant source familiar with the situation says that the only governing document on the deal was the directive of First Deputy Prime Minister Igor Shuvalov (not entered into the new government in May) of March 16 to the Board of Directors of Transneft to vote for the purchase of the Summa package in price range up to $ 1.2 billion. Evaluation was carried out by E & Y.
In Summa, Kommersant confirmed the closing of the transaction, “which was concluded on market terms.”
In eight years, together with the management of Transneft, the port achieved high operating and financial results, they add to the company. To date, Transneft is for him the only true controlling shareholder, Summa believes: “We are confident that NCSP will continue the successful development of its capacities.”
The petition to acquire the Summa share in NCSP was approved by the FAS at the end of February (see “Kommersant” dated February 26). However, in late March, the court arrested the co-owners of NCSP Ziyavudin and Magomed Magomedov on suspicion of organizing a criminal community, embezzlement and embezzlement.
The Novorossiysk Commercial Sea Port Group unites ports in Novorossiysk, Primorsk and Baltiysk. Net profit under IFRS for the first half of the year decreased by 43% to $ 140.3 million, revenues grew by 7% to $ 480.5 million. Cargo turnover in January — July decreased by 3.3% and amounted to 82.4 million tons.
Transneft can now receive dividends of the NCSP, the payment of which has so far been blocked due to the arrests imposed on the assets of the Magomedov brothers. According to "Kommersant", the government is now discussing dividends of the NCSP for the first nine months of 2018, which may amount to 50% of net profit under IFRS. A source in Kommersant in the government last week told Kommersant that the White House agrees to such payments, but there is no final decision. At the end of September, the NCSP shareholders approved the payment of 10 billion rubles. as dividends for the first half of the year.
Aton's senior analyst Mikhail Ganelin says that the price of $ 750 million is “quite reasonable and adequate." NCSP is a very high quality asset, one of the most attractive in the Russian Federation, the port consistently generates cash flow and has a diversified cargo base, the expert reminds. At the same time, now Transneft will have to resolve issues related to the transshipment of not only oil and oil products, but also other goods - grain, containers, etc., this is not exactly the core business for the company, notes Mr. Ganelin.