Summa May Buy 56% of FESCO for $1 Bln

Russia’s Summa Group may buy 56 percent of the Vladivostok based FESCO Transportation Group from businessman Sergei Generalov for about $1 billion to establish a land-shipping company, Kommersant business daily reported on Friday quoting market sources.

“[Summa] will have an opportunity to establish a land-shipping company after the FESCO purchase and develop a port-railway-port chain for new transit services in Russia,” a source close to Summa told the paper.

Summa and Generalov declined to comment information to Kommersant.

FESCO’s assets, which could be bought by Summa, includes the Vladivostok sea trade port, a fleet of 49 ships, and Dalreftrans, the largest operator of refrigerator containers in Russia’s Far East.

Summa, a diversified holding owned by Russian billionaire Ziyavudin Magomedov, is a private group with assets in port logistics, engineering, construction, telecommunications and the oil and gas sectors.

The stake in FESCO is the largest asset in Generalov’s portfolio in Russia. Analysts think that Generalov will develop his minor assets after any sale of the stake in FESCO and may purchase some shipping assets in Europe.


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