DGAP-News: Far Eastern Shipping Company: press release
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March 15, 2013
Press release
Far-Eastern Shipping Company plc, (FESCO or the Group) reports that on March 13, 2013 there was a meeting of Board of Directors of FESCO. The Board elected Alexander Vinokurov, President and CEO of Summa Group, as its Chairman and approved the Audit Committee and Remuneration Committee.
The Group also announces certain updates on recent changes to the Group structure.
- Acquisition of majority stake in FESCO by Summa and its partners. On 13 December 2012, Summa Group and GHP Group indirectly acquired 49.99% and 23.75% of the shares of FESCO, respectively. The acquisition was funded by a mixture of debt and equity.In December 2012, TPG joined in Summa Groups investment in FESCO, as a result of which TPG has certain rights in respect of oversight of the FESCO business and an indirect economic ownership interest of 17.5% in the Group
- Acquisition of control over VMTP. On 31 March 2012, the Group obtained control over Commercial Port of Vladivostok by acquiring 47.78% of shares and voting interests in the company. As a result, the Groups equity interest in Commercial Port of Vladivostok increased from 50% to 97.48%
- Downsizing of Shipping operations. In December 2012, FESCO disposed of 21 vessels with total DWT of 622,986 tons. As we continue to reduce the size of our fleet we will maintain our focus on servicing our Liner & Logistics Division and several other niche markets.
Yuriy Gilts, President of FESCO, commented: We are confident that the recent developments will give the company a strong impulse for business expansion and growth. The company will benefit from the new opportunities coming from the synergies with transportation and logistics assets of Summa Group, as well as from the strong international experience of TPG, one of the leading global private equity firms. FESCO is planning to adhere to international best practices in corporate governance, and may consider transactions in the capital markets to create additional shareholder value.
About FESCO
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DGAP-News: Far Eastern Shipping Company: press release