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U.S. Investment Fund Siguler Guff & Company Acquires 50% of Container Terminal Ilyichevsk

Saturday, 28 February 2015 | 00:00
The American private equity investment firm Siguler Guff & Company sealed the deal to acquire a share in the private enterprise “Container Terminal Illyichevsk” (CTI). Siguler Guff & Company with over $10 billion of assets under management is operating across three continents. The new investor indirectly owns 50% share in CTI. Management of the New York-based company intends to use its global expertise for developing production volumes of CTI as well as increasing container capacity of Ilyichevsk seaport.

“Participation of such a global partner as Siguler Guff & Company will take our company to the next level,” commented Andrey Pavlyutin, CEO of CTI. “Despite the difficult economic situation in the country, we plan to continue developing and growing. CTI has already invested USD 56 million into the infrastructure of Ilyichevsk Commercial Sea Port and will continue improving the throughput of the terminal. The new partner’s stake in CTI will help us implement our plans.”

Representatives of Siguler Guff & Company also consider their interest in CTI rather promising. Ukraine's economy will recover. There has been a significant political reboot and important reforms are being implemented. Rich in resources and boasting highly educated population of over 45 million, Ukraine presents new opportunities for the investment firm.

According to the US investor, the implementation of the Association Agreement between Ukraine and the EU will inevitably increase Ukraine’s involvement in the world trade. CTI, as one of the market leaders, will grow with the country's economic recovery. The investor believes that its decision to come to Ukraine will send a positive signal to the global investment community and contribute to the growth of foreign capital in Ukraine.

“Container Terminal Illyichevsk” was established in 2005 to expand the infrastructure of the Ilyichevsk seaport and increase its turnover. Acting under the joint venture agreement concluded between CTI and the State Enterprise Ilyichevsk Commercial Sea Port (ICSP) in 2005, the company conducted a large-scale reconstruction of the container terminal. The total amount of CTI’s investments reached USD 56 million.

On January 27, 2015, the agreement between CTI and ICSP was terminated by Odesa regional commercial court at the suit of ICSP. Arguing that the termination of the contract contradicted, among other legal provisions, the Law of Ukraine “On Sea Ports of Ukraine”, CTI has appealed the respective court ruling.

Together with Siguler Guff & Company, CTI is now owned by German forwarding company SRR Deutschland with 25% share in the company, and by CEO of CTI, a citizen of Ukraine Andrey Pavlyutin, who owns another 25%.
Source: Interfax Energy
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