The Dubai port operator DP World considers the possibility of acquiring share in the Russian transport group Fesco, sources familiar with the situation. The operator of international container terminals can inject cash into Fesco’s capital and get control of at least a 20% stake in the company, said familiar sources on condition of anonymity due to the non-public nature of the negotiations. The deal could be closed as early as next month. The Chairman of the Board of Directors and majority shareholder in Fesco, Ziyavudin Magomedov, last year signed a partnership agreement with DP World.
DP World is interested in Fesco while it is negotiating to restructure its debt after not paying interest on dollar bonds for about an year. The Russian company, which, in particular, manages the Vladivostok Commercial Sea Port, faced difficulties due to the weakening of the ruble and the reduction of sea freight rates.
A representative of DP World in Dubai declined to comment on specific investments. The company is considering a number of infrastructure opportunities in the Russian Federation, including existing ports and new projects.
The representatives of Fesco and the group controlled by Magomedov refused to comment, as well.
The market capitalization traded on the Moscow Stock Exchange Fesco was about 160 million USD before the announcement of the interest of DP World. After that, the shares of the Russian company in Moscow grew by almost 19% and reached 3,335 rubles.
Magomedov and the private equity fund TPG control 49.9% in Fesco. Last year, DP World and Sum Group agreed to cooperate in finding investment opportunities in Russia.