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. Last Updated: 07/27/2016

Shipper's Share Issue Raises $206M

Far Eastern Shipping Company, or FESCO, said Friday that it had raised $206 million through a rights share issue equivalent to 15 percent of its expanded equity capital.

Of the offering, existing shareholders exercised their pre-emptive rights for 83.7 percent, at 16.83 rubles apiece, to raise about $171 million. The remainder was placed on the market at 17.85 rubles per share, raising $35 million.

The country's top container shipping firm has said it will use the proceeds to reduce debt and finance investments.

It plans to acquire a stake in a container terminal in a European Union country, as it develops a joint venture with Russian Railways to move goods by rail across the country.

FESCO is controlled by Industrial Investors, led by former Fuel and Energy Minister Sergei Generalov, with a 64 percent stake. It has also sold a stake to Swedish fund manager East Capital.