The Offering will be the first IPO of shares in a subsidiary of Russian Railways and is a key part of the ongoing Russian rail industry reform. The Russian Government approved the sale by Russian Railways of up to 4,863,170 shares representing 35% minus 2 shares in the Company on October 5, 2010 and the Russian Railways’ board approval of the Offering is expected later this week.
The Offering consists of a sale of existing shares in the form of ordinary shares and, provided that all necessary approvals are obtained, Global Depositary Receipts together with the shares are expected to be listed on the London Stock Exchange under the symbol TRCN.
J.P Morgan, Morgan Stanley, and Troika Dialog are joint global coordinators and joint bookrunners of the Offering and TKB Capital is a co-bookrunner of the Offering.
Vladimir Yakunin, President of Russian Railways, commented: “This listing in Moscow and London marks an important milestone for both TransContainer and Russian Railways. It is the first public share offering by a Russian Railways subsidiary, part of the structural reform that aims to improve the efficiency and profitability of rail services in Russia, unlock value and encourage investment for its modernisation. Intermodal container transportation has resumed growth after the world financial crisis and it has significant potential in the future. Russian Railways remains committed to TransContainer and will continue to support its development.”
TransContainer is the leading intermodal container transportation and integrated logistics solutions company in Russia. It provides comprehensive container transportation and freight management services and is the market leader in Russia by flatcar fleet size, containers transported by rail and rail-side container terminal throughput.
• Operates approximately 25,500 flatcars, which transported approximately 1.1m teu in 2009 and 550,000 teu in the first half of 2010
• Owns a network of rail-side container terminals located at 46 railway stations from St Petersburg to Vladivostok in Russia and operates one terminal in Slovakia. The Company’s terminals, many of which are located along Russia’s busiest transport corridors, had a throughput of approximately 1.46m teu in 2009, and 730,000 teu in the first half of 2010
• Has an extensive sales network comprising approximately 150 offices and service centres in Russia as well as presence in the CIS, Europe and Asia
• Had 2009 revenue of RUR 16.4 billion (US$ 537m) and net income of RUR 590m (US$19m). The Company’s assets were RUR 30.7 billion (US$1,016m) as of December 31, 2009.