VTB in talks to buy stake in Russian rail freight firm-sources

Kernel Holding SA

15/05/2019 16:15

MOSCOW, May 15 (Reuters) - Russia's second-largest bank VTB
 VTBR.MM  is in talks to buy a stake in Rustranscom (RTC), the
country's biggest transporter of grain by rail, four industry
sources told Reuters.
    Two sources said the state lender was negotiating to buy a
controlling stake in RTC, but did not say how much the company
was being valued at in the deal. 
    Two other sources said the bank was in talks for a stake in
RTC, without specifying whether it was seeking a minority or
majority stake. 
    A deal would further boost VTB's presence in the country's
grains sector, where it already owns two grains terminals and is
eyeing a stake in a third according to a news report. 
    Russia is the world's largest wheat exporter, and VTB has
said it was working with the government to develop the country's
potential for grain exports. 
    VTB and RTC did not reply to requests for comment.
    Rustranscom had been planning to list its shares on the
London Stock Exchange but postponed the IPO last month in favour
of a private equity transaction. It did not disclose the
identity of the potential investor at the
time. urn:newsml:reuters.com:*:nL8N21J68U urn:newsml:reuters.com:*:nL5N221081
    VTB Capital, VTB's investment branch, was among the joint
global co-ordinators and joint bookrunners for the planned IPO
and had valued the company at $1.363-1.605 billion, a VTB report
seen by Reuters showed.  urn:newsml:reuters.com:*:nL8N21T5WJ
    RTC, owned by co-founders Konstantin Sintsov and Konstantin
Zasov, operates 68,000 rail cars and is the market leader in
rail transportation of grain in Russia and Kazakhstan, as well
as for timber and mineral fertilisers in Russia.  
    VTB already owns two large marine grain terminals in the
southern Russian city of Novorossiisk. It also has been in talks
to buy a 50% stake in the Taman grain terminal from Ukrainian
agricultural firm Kernel  KER.WA , a Russian daily has said.
 urn:newsml:reuters.com:*:nL5N22613H
    

 (Reporting by Gleb Stolyarov, Olga Popova and Tatiana Voronova,
additional reporting by Gabrielle Tétrault-Farber
Editing by Deepa Babington)
 ((Gabrielle.Tetrault-Farber@thomsonreuters.com;))