Rosneft Inks Deal to Take Over Prime Shipping
Rosneft President, Chairman of the Management Board Igor Sechin and Pietro Barbaro Group owner Giovanni Barbaro signed Heads of Agreement on acquisition of 95% share of Prime Shipping group of companies, engaged in transportation of oil and oil products by inland water-ways of the Russian Federation and adjoining seas.
The Heads of Agreement envisage that investor in the project will be a joint venture of Rosneft and Sberbank Merchant Banking (acting by Sberbank Investments LLC), which is a financial partner of Rosneft in the transaction, and raising debt capital from Sberbank of Russia for the execution of the transaction.
Pietro Barbaro Group has international practice in the river and sea transportation industry, and will remain the minority partner in Prime Shipping. Rothschild acts as a financial advisor of Pietro Barbaro Group on the transaction.
Commenting on the signing Rosneft President Igor Sechin said: ‘This transaction will allow Rosneft, as one of Prime Shipping shareholders, to expand and strengthen capacities of Rosneft in oil and oil-products river transportation industry and to assure efficient supply of products to the best sales routes. This transaction is also attractive for us from the financial side as a result of partnership with Sberbank.’
Press Release, May 23, 2014