Globaltrans decides not to participate in Freight One auction
Globaltrans Investment PLC (together with its consolidated subsidiaries "Globaltrans" or the "Group"; LSE ticker GLTR) today announces that, in light of current uncertainty in global financial markets, it has decided not to participate in the public auction of 75 percent minus two shares of OJSC Freight One (“Freight One”).
The Group has taken this decision on the basis of a detailed analysis of Freight One including a comprehensive valuation of potential efficiency gains. While the Group has already structured and negotiated a preliminary financing package for the acquisition and believes Freight One has good prospects, due to global financial conditions, the Group has decided not to proceed with an offer. In line with Globaltrans’ strict adherence to principles of prudent financial management, the Board of Directors considered the significant leverage associated with the potential transaction excessive in the current economic environment.
The Group will continue to focus on the further development and growth of its business given the fundamental attractiveness of the Russian freight rail transportation market and its outlook. Globaltrans’ business model and strong balance sheet provide a solid base to pursue the Group’s growth strategy by means of railcar purchases as well as exploiting opportunities presented by the upcoming liberalisation of the locomotive traction market and by ongoing consolidation in the industry.
Globaltrans Investor Relations
+357 25 503 153
For international media
Holloway & Associates
Laura Gilbert / Zoe Watt
+44 20 7240 2486
NOTES TO EDITORS
Globaltrans (Globaltrans Investment PLC together with its subsidiaries – “Globaltrans” or the “Group”) is the largest privately owned freight rail transportation group with operations in Russia by the size of owned rolling stock fleet (based on publicly available information) and the first such group to have an international listing.
Globaltrans Investment PLC is incorporated in Cyprus with major operating subsidiaries located in Russia, Ukraine and Estonia. The Group provides freight rail transportation, railcar leasing, and certain ancillary services to clients in Russia, the CIS countries and the Baltics.
Group’s fleet of rolling stock owned and leased under finance and operating leases amounted to 49,529 units at 30 June 2011, including 28,776 gondola cars, 20,207 rail tank cars, 56 locomotives and 490 other railcars.
The Group’s Freight Rail Turnover in the first six months of 2011 amounted to 57.5 billion tonnes-km with 36.4 million tonnes of freight transported. In the first six months of 2011 the Group’s Adjusted Revenue amounted to USD 603.6 million with Adjusted EBITDA reaching USD 256.5 million.
Globaltrans' global depositary receipts (ticker symbol: GLTR) are listed on the Main Market of the London Stock Exchange since May 2008.
To learn more on Globaltrans, please visit www.globaltrans.com.
Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of Globaltrans. You can identify forward-looking statements by terms such as 'expect', 'believe', 'anticipate', 'estimate', 'intend', 'will', 'could', 'may' or 'might', the negative of such terms or other similar expressions. Globaltrans wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Globaltrans does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Globaltrans, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries Globaltrans operates in, as well as many other risks specifically related to Globaltrans and its operations.