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Global Ports To Buy NCC Group For $291 Mln Plus New Shares - Update

(Previous versions of this story incorrectly included the ticker NCC.L, which references NCC Group plc. NCC Group Limited is a separate company.)

Global Ports Investments Plc. (GLPR.L) Monday said it has entered into binding arrangements to acquire 100 percent of the share capital of NCC Group Limited for a cash consideration of $291.0 million and new shares representing around 18 percent of the enlarged share capital of Global Ports to be issued to Ilibrinio Establishment Limited and Polozio Enterprises Limited in equal proportions.

The acquisition of the second largest container terminals operator in Russia strengthens Global Ports' leading position in the growing Russian container market. It provides potential for greater operational efficiency through improved terminal network management and a reduction in overhead costs.

Additionally, the enlarged group will have about 1.124 million TEU of available capacity, enabling it to accommodate throughput growth while reducing the Group's CAPEX outlays for the next few years.

The combination will enable shipping line customers to benefit from network savings through improved call rationalization, better berth utilisation and enhanced productivity.

NCC Group's container terminal operations are located on the Baltic Sea, the principal gateway for Russian containerized cargo. Its key assets include 100 percent ownership of First Container Terminal in St. Petersburg, 80 percent ownership of the recently launched Ust-Luga Container Terminal in the port of Ust-Luga and 100 percent ownership of Logistika-Terminal, an inland container terminal located close to St. Petersburg.

In 2012, NCC Group generated revenues of $253 million and adjusted Earnings Before Interest, Tax, Depreciation and Amortization or EBITDA of $164 million.

The deal also includes a call option for Global Ports to acquire 50 percent of the Illichevsk Container Terminal for the strike price of $60 million from NCC Group's current shareholders. The term of the call option is three years after the closing of the transaction.

Global Ports is currently trading down 2.4 percent on the London International Exchange at $10.5.

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by RTT Staff Writer

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