Moscow (Platts)--27Nov2012/612 am EST/1112 GMT
Russian conglomerate Sistema has signed a deal to acquire SG-Trans, the country's biggest independent operator of railcars for transportation of LPG, the company said Tuesday. Sistema will pay a total cash consideration of Rb22.77 billion ($730 million) for 100% of SG-Trans, in a deal which the company hopes to close by the end of this week, it said in a statement. The Russian government previously approved a tender to select a buyer for SG-trans. Article continues below...Sign up to Petrochemical Alert today. Petrochemical Alert gives you everything you need to stay informed and react to changing market conditions, including minute-to-minute updates on news and pricing for all your petrochemical needs. From news flashes to long-range analysis, and real-time deal reporting to end-of-day price assessments, Petrochemical Alert is consistently first to deliver breaking news that moves the world's petrochemicals markets. It's an indispensable tool for those making crucial decisions.
Russian conglomerate Sistema has signed a deal to acquire SG-Trans, the country's biggest independent operator of railcars for transportation of LPG, the company said Tuesday. Sistema will pay a total cash consideration of Rb22.77 billion ($730 million) for 100% of SG-Trans, in a deal which the company hopes to close by the end of this week, it said in a statement. The Russian government previously approved a tender to select a buyer for SG-trans.
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Sistema, which owns a majority share in Russia's eighth largest oil producer Bashneft, said that the acquisition is in line with the company's strategy to develop a strong position in the LPG transportation market. "We believe Sistema is well positioned to benefit from this acquisition due to SG-Trans' leading position in the Russian LPG transportation market and our now combined fleet of 34,500 railcars," Sistema CEO Mikhail Shamolin said in the statement. Through Bashneft, Sistema has controlled 50% of railcar operator Financial Alliance since August. In September, its subsidiary Sistema-Venture Capital assumed operational management of one of Russia's leading rail operators Transportno-Logisticheskaya Kompaniya, the statement said. The acquisition of SG-Trans is "a significant value creation opportunity, through potential restructuring and optimisation efforts, adjustment to market rates and the exploration of possible strategic options for SG-Trans' gas storage and retail segment," the statement said. Sistema and Bashneft are now looking at options to combine its rail investments under one management team, the company said. --Rosemary Griffin, rosemary_griffin@platts.com --Edited by Geetha Narayanasamy, geetha_narayanasamy@platts.com
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