FESCO Transportation Group has announced completing the sale of its 25.1% stake in TransContainer.
24.8% was purchased by VTB Bank, and the remaining 0.3% was bought by an unnamed third-party investor.
FESCO intends to use the funds received from the deal to reduce the Group’s indebtedness, including the repayment of REPO loan which was secured against the TransContainer stake.
«The sale of our stake in TransContainer is a weighed and objective decision of FESCO’s Board of Directors. Currently, the Group has a significant debt burden, and our priority is to reduce it. We intend to continue to develop FESCO’s core businesses and raise its operational efficiency,» said Leyla Mammed Zade, chairman of FESCO’s Board of Directors.
As of October 23, the TransContainer stock on Moscow Excgange had been declining for some days, while on London Exchange it was flat.