Sistema Buys SG-Trans Rail Firm for $735 Mln

MOSCOW, November 29 (RIA Novosti) – AFK Sistema, Russia’s largest publicly-traded diversified holding company, has acquired SG-trans, the country’s largest operator of specialized railcars for transportation of liquefied petroleum gas, for 22.77 billion rubles ($735 million), Sistema said on Thursday.

The agreement on acquiring 100 percent of SG-trans was signed on Tuesday and came into force on Thursday.

The signing of the agreement followed the Russian government’s approval of a tender to select a buyer for SG-trans.

“This acquisition is in line with Sistema’s strategy to develop a strong position in the transportation market,” Sistema said in a statement.

“Sistema sees a significant value creation opportunity in SG-trans through potential restructuring and optimization efforts, adjustment to market rates and the exploration of possible strategic options for SG-trans’ gas storage and retail segment,” Sistema said.

 

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