Russian Railways plans to contribute its equity stake in TransContainer and JSC RZD Logistics to UTLC, while Kazakhstan and Belarusian Railway are to contribute their cross-border container terminals at Dostyk, Altynkol and Brest stations. In addition they will include their flatcar fleets and shares in their relevant subsidiaries, respectively.
UTLC is expected to be registered as a Russian legal entity, subject to completion of all the necessary legal procedures and receipt of corporate and government approvals. The shareholding structure of UTLC is expected to be determined by the market value of assets contributed by each of Russian Railways, Kazakhstan Railways and Belarusian Railway.
TransContainer believes that the establishment of UTLC will help to unlock land transit potential and will have a positive impact on rail container transportation volumes and asset utilisation.
Despite the anticipated change at the level of the majority shareholder, TransContainer expects to continue to be listed on the London and Moscow Stock Exchanges and to follow the corporate governance principles applicable to internationally listed public companies.