FESCO Transportation Group (“FESCO”, the “Group”) announced yesterday (Oct. 23) that the Group’s companies have completed the sale of their 25.1% stake in PJSC TransContainer. 24.8% of the TransContainer stock was purchased by VTB Bank, another 0.3% was purchased by a third-party investor.
The funds received from the deal will be allocated for reduction of the Group’s indebtedness, including the repayment of REPO loan which was secured against the TransContainer stake.
“The sale of our stake in TransContainer is a weighed and objective decision of FESCO’s Board of Directors. Currently, the Group has a significant debt burden, and our priority is to reduce it. We intend to continue to develop FESCO’s core businesses and raise its operational efficiency,” said Leyla Mammed Zade, chairman of FESCO’s Board of Directors.
