DP World-led consortium in talks for Fesco stake

Summa Group, the holding company of Russian billionaire Ziyavudin Magomedov, is negotiating a minority stake sale in one of Russia’s best know transport conglomerates, Fesco. Summa is in advanced talks with a consortium led by Dubai terminal operator DP World, and the state-run Russian Direct Investment Fund (RDIF), according to the Financial Times.

Fesco is a containership owner as well as running the port of Vladivostok and handling much of the freight carried on the Trans-Siberian railway.

Fesco has hit financial trouble in recent years. In 2016 it defaulted on interest payments for its eurobonds.

In January last year DP World formed DP World Russia, a joint venture with RDIF, looking at Russian transport investments while last September it signed a memorandum of understanding with Summa Group with an eye on local port investments.