EBRD Buys Fesco Stake for $120M

The European Bank for Reconstruction and Development said Thursday that it had bought 3.8 percent of Russian transport and shipping firm Fesco for $120 million.

Fesco is majority controlled by the group Industrial Investors, led by former energy minister Sergei Generalov.

In July, Fesco raised $640 million from selling new shares and said it would use the money to buy assets.

Last year, it also raised $420 million in two share issues as it seeks to expand its presence in Russia's key foreign-trade gateways.

It struck a deal in 2007 to buy control of the Vladivostok Commercial Sea Port. Apart from the Far East, Fesco operates on the Baltic and Baltic seas.

The total amount of container operations by companies in the group was 2.4 million 20-foot equivalent units in 2007, up 30 percent from 2006.