Globaltrans Investment PLC Acquisition of 100% of MMK-Trans completed
Globaltrans Investment PLC ("Globaltrans" or the "Company", and together with its consolidated subsidiaries, the "Group"; LSE ticker: GLTR) today announces that it has completed the acquisition of 100% of OOO MMK-Trans ("MMK-Trans") for a cash consideration of USD 250 million and assuming net debt and working capital of approximately USD 84.5 million. MMK-Trans was formerly the captive freight rail operator of MMK Group, one of the largest single-site steelmakers in Russia. The transaction was announced on 19 December 2012.
MMK-Trans principally handles cargoes of the MMK Group, primarily metallurgical cargoes and coal. As part of the transaction, Globaltrans entered into a five-year contract guaranteed by MMK Group to supply it with rail transportation services for at least 70% of MMK's rail cargo flows. The contract will become effective from 1 March 2013.
Following the transaction Globaltrans' combined owned fleet amounts to 61,965 units with a combined total fleet of 65,399 units.