TIDMFXPO
RNS Number : 9709X
Ferrexpo PLC
15 December 2010
15 December 2010
Ferrexpo plc
("Ferrexpo" or the "Group")
Acquisition of Helogistics
Ferrexpo today announces that it has entered into an agreement
to acquire 100% of the share capital of Helogistics Holdings GmbH
("Helogistics") and to acquire the existing bank debt of
Helogistics, which has a face value of EUR72.1 million, for EUR28.5
million cash. The acquisition of the share capital of Helogistics
and the existing bank debt is subject to regulatory approval and is
expected to be completed around the end of the calendar year.
During 2010 Ferrexpo provided a EUR6 million working capital loan
to a subsidiary of Helogistics, which will remain in place.
Helogistics is one of the largest inland waterway transportation
companies operating on the Danube River. It employs approximately
600 people; including leasing crews, and operates 253 vessels. It
transports iron ore pellets as well as other bulk cargos along the
Danube and Rhine rivers from the ports of Ismail, Ukraine, and
Rotterdam, the Netherlands to various locations in Northern,
Central and Eastern Europe. In 2009 and to 30 November 2010,
Helogistics has transported approximately 504 thousand tonnes and
575 thousand tonnes of Ferrexpo pellets, respectively, to its core
customer in Central Europe.
For the year ended 31 December 2009 Helogistics reported EBITDA
of EUR0.7 million. As of 30 June 2010 the gross assets of the
company were EUR58.8 million and the estimated value of the net
assets was EUR28.5 million.
Michael Abrahams, Chairman of Ferrexpo commented:
"This acquisition adds to Ferrexpo's extensive logistics network
in Northern, Central and Eastern Europe solidifying our presence as
the regional market leader in iron ore pellet supply. It is part of
our strategy to further control the supply chain securing existing
customer relationships and providing access to new European markets
thorough out the Rhine/ Danube River corridor in Europe."
For further information, please contact:
Ferrexpo:
Ingrid McMahon +44 207 389 8304
Pelham Bell Pottinger
Charles Vivian +44 207 861 3126
James Macfarlane +44 207 861 3864
Notes to Editors:
Ferrexpo:
Ferrexpo is a Swiss headquartered resources company with assets
in Ukraine, principally involved in the production and export of
iron ore pellets, used in producing steel. Current output is
approximately 9.5 million tonnes, most of which is exported to
steelmakers around the world. The Group is listed on the main
market of the London Stock Exchange under the ticker FXPO. For
further information please visit www.ferrexpo.com.
Helogistics:
Founded in 2007, Helogistics Holding GmbH aims to be the leading
service provider within the inland waterway transportation
industry. As the holding company of Erste Donau-Dampfschiffahrts
GmbH and Mahart Duna Cargo Kft the business activities cover the
transport of commodities as well as semi-finished and ready-made
goods along the 3.500 km long waterway between Rotterdam and the
Black Sea; in the dry-bulk goods segment the majority of goods
transported are commodities such as iron ore and grains.
Helogistics is headquartered in Vienna and has branch offices in
Linz, Bratislava, Budapest, Belgrade, Izmail and Constanta. Fur
further information please visit www.helogistics.at.
This information is provided by RNS
The company news service from the London Stock Exchange
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