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13. June 2014 market – a focus Research Center on deals activity

Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, June 2014

Interporto di The auction for 60% stake in Interporto di Bologna, the Italian Bologna auction integrated logistics centre controlled by the city and provincial councils attracts no bidders - of Bologna, has attracted no bidders, the Milano Finanza reported. The report (translated) unsourced report said that the base price for the auction was set at EUR 29.6m. A previous report said that FS, the Italian railway network, was interested in taking a stake in Interporto.

13.06.2014 Milano Finanza daily edition

Connexxion and Connexxion and Veolia Netherlands, two Dutch public transport Veolia likely to companies, are likely to merge their operations in the Netherlands next merge Dutch year, Dutch-language daily het Financieele Dagblad wrote, citing operations next Connexxion's General Manager, Bart Schmeink. He added the merger year (translated) would create a public transport company in the Netherlands with an annual turnover of over EUR 1bn and 14,000 employees, the item noted. Connexxion saw losses of EUR 58m for 2013, against a profit of EUR 2m for 2012, while the turnover in 2013 dropped from EUR 1bn in 2012 to EUR 967m in 2013. A merger with Veolia would create synergy advantages, Schmeink added, the report noted. Both Connexxion and Veolia are held by the French transport group Transdev, the article added.

12.06.2014 Het Financieele Dagblad

NMBS/SNCB The management at Belgian railways NMBS/SNCB owned logistics looking for Belgian group NMBS/SNCB Logistics, is looking for private and public Belgian private and public investors to support a fresh business plan and a to be established new investors to support cargo company, French-language daily l’Echo wrote. The report cited a new SNCB Logistics document presented by the NMBS/SNCB management to the workers' cargo company - union representatives at NMBS/SNCB Logistics, disclosing how they report (translated) want to improve and optimize the logistics group. Talks with the German DB Schenker over a sale of NMBS/SNCB Logistics are ongoing but the NMBS/SNCB management no longer thinks they will succeed in this sale. Therefore, they are looking to establish a new company, without DB Schenker, in which the freight cargo operations of NMBS/SNCB (900 employees) will be concentrated, including SNCB Freight Services (900 employees), the item noted. The management at NMBS/SNCB will look for Belgian private partners such as the Port of Antwerp and ArcelorMittal and public partners such as the investment vehicles of the Walloon and Flemish government to support this new company, the report noted. The management aims at achieving an EBITDA of EUR 46m as from 2018 for the new cargo group, the article added.

11.06.2014 L'Echo

Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, June 2014

OT Logistics sees Krokus PE private equity has reduced ownership in OT Logistics, a Krokus PE reduce Warsaw-listed Polish shipping and logistics company, according to an ownership to 15% announcement on 10 June. Nova Polonia II, managed by Krokus PE, has stake sold a 9% stake in OT Logistics, Krokus PE announced. The value of the transaction exceeded PLN 25m (USD 8.2m). The shares were sold to institutional investors, via accelerated book-building, the statement said. Dom Inwestycyjny Investors handled the sale. As a result of the transaction, the fund reduced its ownership in OT Logistics from 24% to 15% stake, the statement said. Nova Polonia II, whose capital stands at EUR 100m (USD 135.3m), is the fourth fund managed by Krokus PE. OT Logistics market cap stands at PLN 326.93m (USD 107.7m).

11.06.2014 Company Press Release (Translated)

GEFCO to make GEFCO, a French transport and logistics group, will make a EUR 1bn EUR 1bn acquisition acquisition alongside bolt-on buys, as it aims to double its revenue by by 2020; in talks 2020, Chairman Luk Nadal said. The company wants to increase its with smaller revenues to EUR 8bn by 2020 through acquisitions and organic growth. Russian target - This will be up from around EUR 4bn generated in 2013, the chairman chairman said, adding that GEFCO scans Europe, , Latin America and Asia for deals. GEFCO is already in early stage talks with an undisclosed target based in Russia. GEFCO can close one or two deals by the end of the year, the chairman said. The bolt-on targets are companies with warehouse facilities and specific transportation systems worth between EUR 10m and EUR 50m, the chairman said. At the end of 2012, (RZD) acquired a 75% stake in GEFCO from PSA Peugeot Citroen for EUR 800m. Peugeot is likely to hold onto its 25% stake, as GEFCO provides upstream and downstream services for Peugeot. Peugeot wouldn’t want a competitor to gain access to GEFCO and is likely to be supportive of GEFCO’s M&A plans, a Paris-based banker familiar with the company said. GEFCO could look to acquire a freight forwarder, the banker added. GEFCO is an industrial and automotive logistics company providing solutions for industrial customers and is present in 150 countries. In 2012, the group recorded EUR 3.6bn in revenues and EUR 109m of operating income.

10.06.2014 Proprietary Intelligence

ZSSK Cargo hopes The Slovak state-owned company ZSSK Cargo, hopes to sell a 66% stake to sell 66% stake in in its subsidiary ZSSK Cargo Intermodal for EUR 20m, reported Cargo Intermodal Hospodarske Noviny. The Slovak language item cited General Director for EUR 20m of YSSK Cargo, Vladimir Luptak as saying that the sale of the stake in the (translated) company focused on intermodal transport is expected to be completed by year end.

10.06.2014 Hospodarske Noviny

Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, June 2014

CSAD Jihotrans The Czech transport company, CSAD Jihotrans acquired a 100% stake in acquires 100% stake GW Train Regio, reported Mlada Fronta Dnes, citing CSAD Jihotrans in GW Train Regio co-owner, Robert Krigar. The Czech language item specified that the (translated) seller was the Czech company Inzenyrske a dopravni stavby (IDS). The item noted that CSAD Jihotrans is mainly active in the bus and trucks transport sector, while GW Train Regio -previously known as Viamont Regio - is active in the railway sector. GW Train Regio posted sales of CZK 692m (EUR 25m) in 2012, the report noted.

10.06.2014 Mlada Fronta Dnes

AAE Cargo acquires AAE Cargo AG, part of the AAE group and leading leasing company of 66% stake in Cargo standard rail freight cars in Europe, will take over 66 per cent of Cargo Wagon from ZSSK Wagon for Euro 7 million, and thus will become the majority Cargo shareholder of the operating company for freight wagons of the Slovakian national railway. The remaining 34 per cent are to be held by ZSSK Cargo, the freight transport branch of the . As part of the transaction, Cargo Wagon will purchase 12,450 freight wagons from the fleet of ZSSK Cargo for Euro 180 million. Cargo Wagon will manage this fleet and will lease back 8,218 wagons to ZSSK Cargo for a long term. "With the proceeds from the sale of the majority in Cargo Wagon and the sale of the wagons, ZSSK Cargo can take a large step toward its planned debt relief of the company", explained Karsten Sachsenröder, CEO of the AAE Group. "Since 1989, the AAE Group has been closely linked to Slovakia, and will use its know-how to optimise the management of the fleet." The basis for the involvement of the AAE Cargo AG in Cargo Wagon and for the purchase of the freight wagons of ZSSK Cargo was a Europe-wide invitation to tender of the Slovakian Ministry of Transport, in the course of which the contract was awarded to the AAE Cargo AG.

10.06.2014 Company Press Release*

Havator acquires Havator is strengthening its operations and establishing a presence in Brunskogsgruppen’ Ljungby through the acquisition of the Brunskogsgruppen AB’s activities s heavy haulage and involving heavy haulage and special transport. The sale of these special transport activities means that Havator AB will take over personnel and vehicles, business and has set up in the Brunskog Group's premises in Ljungby from 1 June. The acquisition is timely for Havator, which is already strengthening its heavy haulage and special transport organisation. The acquisition will expand expertise, primarily within international transport, but will first and foremost supplement solutions for heavy haulage and transport. “Havator's heavy haulage and special transport activities are already established in Norrköping and Gothenburg, and with Ljungby we are gaining the perfect set-up for southern Sweden,” says Olof Kånge.

07.06.2014 Company Press Release*

Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, June 2014

RZD, Gek Terna RZD, the state-owned Russian railway group, together with Greek submit port of company Gek Terna, have submitted an application to participate in a Thessaloniki privatisation tender for the Greek port of Thessaloniki, Vedomosti privatisation tender reported. The Russian daily cited RZD’s Greek spokesperson. The application RZD/Gek Terna consortium is already participating the tender for the (translated) purchase of Greek rail operator TrainOSE, and rolling stock repair firm Rosco, the paper reported, citing the spokesperson. In 2012, TrainOSE posted revenues of EUR 83.3m and an EBITDA of EUR 1.3m, as reported previously.

06.06.2014 Vedomosti

Addison Lee owner Carlyle Group has been urged by bankers to float the UK-based minicab Carlyle Group urged firm Addison Lee, the Financial Times reported. The newspaper did not to pursue IPO – cite a source for the claim. The report went on to quote a person with report knowledge of Carlyle’s investment who said the private equity group is not in a hurry to sell its majority stake in Addison Lee, but has an open mind regarding options for the business. Carlyle acquired its stake in Addison Lee from the cab company’s shareholders in April 2013, the item noted. The deal put a value of approximately GBP 300m (EUR 369m) including debt on Addison Lee, the article added. The report noted that Addison Lee faces increased competition from online taxi booking services such as Hailo and Uber.

05.06.2014 Financial Times

ZSSK Cargo Binding bids for the 50% stake in ZSSK Cargo Intermodal, the newly- Intermodal: binding established subsidiary of the Slovak state-owned railway company ZSSK bids expected by Cargo, are expected by the end of August, reported SME. The Slovak end of August language item cited from a document prepared by the Transport (translated) Ministry to be discussed by the Government. The winner of the tender will be chosen in an electronic auction in September. The item also noted, that the winner of the tender for 66% stake in the other subsidiary of ZSSK Cargo, Cargo Wagons, will be chosen in electronic auction to be held on Friday 6 June. The item added that Cargo Wagons received two binding bids. According to market speculation, the bidders are - Swiss AAE and a Slovak consortium of Slovenska plavba a pristavy and Axbenet, the item said. The state expects around EUR 200m from the sale of a 66% stake in Cargo Wagons.

04.06.2014 SME

Codimas bought by Codimas, a France-based logistics and freight specialist, has been bought Malherbe by the transportation group Malherbe, according to an announcement from the bidder. The daily WK Transport Logistique mentioned that a manager has retained a minority stake. Codimas generates revenues of EUR 15m and employs around 90 people.

03.06.2014 Company Press Release (Translated)

Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, June 2014

Moscow to retain The government of Russia will retain control over the Russian Railways control over RZD (RZD) assets which will be transferred into Integrated Transport and assets transferred Logistics (OTLK), a Russian-Belarusian-Kazakh container operator, to OTLK Russian daily Vedomosti reported, quoting government documents. (translated) Russia’s state-owned railway operator RZD will contribute a 50% 'plus two shares' of TransContainer and a 100% stake 'minus one share' in RZD Logistika to OTLK. The Russian government will monitor the transactions involving the shares of RZD assets transferred to OTLK, according to a draft government decree on the establishment of OTLK which Vedomosti has a copy of. OTLK is being formed by RZD, Kazakhstan National Railways (Temir Zholy), and Belarusian Railways. RZD could exit the project if the other partners failed to transfer assets to OTLK in the agreed time or if they do not achieve the expected benefits from the formation of OTLK, or if the project has negative effect on TransContainer, Vedomosti continued. OTLK will be formed in two phases, a result of which will see RZD will own a 74% stake, Kazakhstan National Railways a 21% stake and Belarusian Railways a 5% stake. OTLK shareholders will be able to increase their stakes in the company by acquiring shares at the expense of dividends, Vedomosti reported, citing a federal official.

03.06.2014 Vedomosti

Russian The Russian government could help Mechel reduce its debt, by government could providing state-owned rail operator RZD with funds for the purchase of help Mechel cut Mechel’s railway line, running to its Elga coal deposit, a newswire debt by giving funds reported. Reuters reported the information on Friday, 30 May, quoting to RZD for miner's Minister of Industry and Trade Denis Manturov. The debt of Mechel, the rail line buy - Russian steel and mining group controlled by Igor Zyuzin, exceeds USD newswire round-up 8bn, said the report. According to Manturov, the company’s prospects would improve if its debt decreases to a minimum USD 6bn. In March, RZD and Mechel were in talks on the sale of Mechel’s rail line for up to RUB 70bn (USD 2bn) in cash, the report continued. An RZD spokesperson told Reuters on Friday that the company would be ready to acquire the railway from Mechel if funds are provided by the government.

03.06.2014 news wire round up

Ferrovie dello Stato: The Italian Government has mandated Marcello Messori, the new Italian Government chairman of the Italian transportation company Ferrovie dello Stato, to gives chairman go start working on the privatization of the company, according to the ahead to conduct Italian language daily Il Sole 24 Ore. The report quoted Messori as privatization via saying that the privatization will take place via a listing on the stock listing exchange. Messori will be in charge of the strategy and the auditing of the company in conjunction with the new Chief Executive Mario Elia.

31.05.2014 Il Sole 24 Ore

Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, June 2014

ACE Logistics ACE Logistics Group, a private Estonian transportation and logistics Group attracts holding, has been approached by strategic and financial bidders but is buyers' interest but not looking to sell, its chairman Karli Lambot said. The company has not looking to sell - received at least 10 bid attempts from undisclosed suitors in the recent chairman past, which were mostly multinational companies from Europe and Nordic countries, according to Lambot. The EUR 17.7m turnover company had net profitability of 6.8% in 2013, according to the company website. Around 45% of its sales come from Estonia, 30% from Lithuania and 20% from Latvia, according to the chairman. The company also operates in Belarus and Finland. Currently, ACE Logistics focuses mainly on organic growth, especially in Finland and Belarus, where its operations are the smallest, Lambot explained. In Finland, ACE Logistics has recently formed a joint venture with the private German logistics group Dachser, as reported. The company would consider opportunistic acquisitions in its existing markets or new countries such as Moldova, Georgia, Armenia or , Lambot said. However, the company is not actively seeking targets and is planning to expand into the new markets in the next five to 10 years, he added. ACE Logistics' shareholders include a private Estonian company Ithal Noukoja with a 58.41% stake, the chairman with 34.09%, and private shareholder Teet Jarvekulg with 7.5%, according to the company website. The company's services include freight forwarding by air, road and sea. It also provides integrated cargo logistics and warehousing services, airport cargo handling in Tallinn, Estonia, and has an airline representation services unit. ACE Logistics competes with international logistic companies such as DHL, DSV and DB Schenker, according to the chairman.

29.05.2014 Proprietary Intelligence

Maat Transport Transport company Maat Transport, from Alblasserdam, has acquired buys Kroon its branch partner Kroon Transport, a specialist transport group Transport operating in Benelux, Germany and Central Europe. Maat is taking over (translated) all of Kroon's employees and trucks. Within the new organisation Maat will have 160 employees and a total of 90 trucks. The acquisition means that Maat now owns three transport companies in Alblasserdam. Maat has six offices which focus on transport of exceptional and difficult-to- transport items, contract transport services, warehousing, truck parking and returns handling.

29.05.2014 Company Press Release (Translated)

Savino del Bene Savino del Bene, a privately held Italian freight forwarding and logistics could sell a 30% to group, is unlikely to reconsider its canceled listing on the Milan stock 49% stake, exchange, the company's president Paolo Nocentini said. “We are still president says thinking of this option, but with a great deal of skepticism", the executive stated, refusing to elaborate. Nocentini was responding to claims made to this news service that the company was again working on the IPO project with the help of Nomura. Savino del Bene called off its Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, June 2014

planned IPO on the main index of the Italian stock exchange at the beginning of December, citing insufficient demand. Nocentini said the company is now considering a stake sale, instead. “We could consider selling a stake of 30% to 49%”, he said. The company is held by Nocentini and CEO Silvano Brandan. Only approaches from industry players would be considered, however, and Nocentini said the company is looking to take on an investor with a long-term strategy. He did not say how much the company would want to raise from the stake sale, but said the company's valuation could be around EUR 350m. "In the case of minority stake sale, this could be lower", he added, saying Savino del Bene held a leadership position in the Italian market, and is well- positioned to expand in the US. “In America, there is room to increase our activities faster than competitors such as DHL”, he said, adding that Savino del Bene has enough infrastructure in place to respond quickly to the US market’s needs.

28.05.2014 Proprietary Intelligence

Spanish The Spanish ministry for development is ready for a progressive government ready privatisation of Renfe’s passenger railways services, Expansion reported, to privatise Renfe citing unspecified sources. Excepting commuter services, which will be progressively - open to the private sector via concessions, the national railway business report (translated) is to be sold in parts, the Spanish-language reports said. The state will begin to put up for auction the passenger services of Levante (Valencia, Alicante and Barcelona via Euromed). The next cabinet meeting could give the green light to the railway liberalization decree once approved by the commission in charge. The process could last four to five years during which the government will give access to new operators, the report said. Several national and international groups have expressed interest including Hemisferio, Globalia, Alsa, Avanza, Ferrovial and Acciona, the German and the French SNSF. Spain's competition regulator CNMC is due to issue a report on the model proposed by the government for the privatisation of Renfe, the report noted.

28.05.2014 Expansion

AMP in talks to sell ArcelorMittal Poland (AMP), the Polish subsidiary of ArcelorMittal steel Kolprem stake maker, is in talks over a partial sale of railway cargo operator Przedsiebiorstwo Uslug Kolejowych Kolprem, a source at APM said. AMP declined to comment. AMP is in talks with several parties, the source said. The source declined to name them, but explained that sector investors would be a natural buyer and said the list of potential names is limited. A decision about the stake that will be up for sale will depend on the outcome of the talks, he said, adding that it could be either a majority or a minority. According to the source, the disposal is being handled internally. A sector investor would help Kolprem improve its performance, the source said. At the same time the business is not critical enough for AMP to retain a 100% stake, he said. Polish logistics Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, June 2014

group Euroterminal Slawkow would be the good fit for Kolprem, a banker familiar with AMP's strategy speculated, citing that company's expansion plans and its focus on the steel industry. Some railway cargo companies could also see a fit, he suggested, naming the number three rail cargo operator CTL Logistics, which is backed by a PE sponsor and has been acquisitive in the past. DB Schenker, the number two player, is focused on internal developments, he said. The Polish railway cargo market is dominated by the state-controlled incumbent PKP Cargo, with a 49% market share and a turnover of PLN 4.75bn (EUR 1.15bn), PKP Cargo’s data shows. DB Schenker has a 19% market share, CLT Logistics 6.8% and the rest is split among several smaller carriers. Founded in 1999, Kolprem owns a fleet of 50 locomotives and 500 railway cars, as well as railway cranes and other cargo-handling equipment. In 2011 Kolprem posted sales of PLN 164m (EUR 39m) or just over 1% of APM group’s overall turnover. Kolprem’s EBITDA in the same period totaled almost PLN 12.3m and its equity at the end of 2011 stood at PLN 71m.

23.05.2014 Proprietary Intelligence

Rosneft acquires Rosneft President, Chairman of the Management Board Igor Sechin and 95% stake in Prime Pietro Barbaro Group owner Giovanni Barbaro signed a heads of Shipping from agreement on the acquisition of a 95% share of Prime Shipping group of Pietro Barbaro companies, engaged in transportation of oil and oil products by inland waterways of the Russian Federation and adjoining seas. The agreement envisages that investor in the project will be a joint venture of Rosneft and Sberbank Merchant Banking (acting by Sberbank Investments), 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 has international practice in the river and sea transportation industry, and will remain the minority partner in Prime Shipping. Rothschild acts as a financial adviser of Pietro Barbaro Group on the transaction. Commenting on the signing of the agreement, 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."

23.05.2014 Stock Exchange Announcement(s)

Dachser and ACE Dachser enters the Finnish overland transport market on June 1, 2014 Logistics form and has established the joint venture Dachser Finland Oy for this Finnish JV purpose. ACE Logistics Group - a network partner headquartered in Tallinn (Estonia) with whom Dachser has already collaborated for over fifteen years in the Baltic nations - holds a 50% equity interest in the JV. Situated in Vantaa, near Helsinki, the new Dachser location holds 1,200 square meters of transit and warehouse space and is connected via the daily departures to Dachser’s European overland network. Goods from Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, June 2014

Finland reach the whole of Europe within clearly defined timeframes via the Eurohubs in Bratislava and Überherrn and through the central platform in Bad Salzuflen, Germany. This also applies to shipments headed to Finland in the opposite direction. Oy Waco Finland, the air and sea freight shipping partner that is domiciled in the same location in Vantaa, additionally takes care of the connection to the intercontinental markets. Dachser Air & Sea Logistics acquired the majority shareholding in this joint venture in 2013. “Ultimately, 85% of the Finnish overland transport market transpires in the triangle formed by the cities of Helsinki, Turku, and Tampere. We see excellent growth prospects in the Finnish market backed by the global Dachser network and its highly- developed processes and IT systems.” In addition, Dachser has a presence in Northern Europe through its own country organizations in Denmark, Norway, and Sweden, and employs about 500 individuals in the region. The Baltic states—Estonia, Latvia, and Lithuania—will be serviced through ACE Logistics Group, Dachser's network partner with decades of experience.

21.05.2014 Company Press Release(s)

Logwin takes full The international logistics service provider Logwin is strengthening it’s control of Logwin position in the Indian market. The company has acquired all the shares Air & Ocean India of the previous minority shareholders in the national organisation in India. The acquisition means that Logwin is now the sole owner of Logwin Air & Ocean India Private Ltd. and will systematically expand it’s commitment in India. Logwin has enjoyed strong growth in India since launching it’s national organisation there in 2009. The original five locations have grown into today's twelve. Logwin has a presence for its customers in the important economic centres of Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Karur, Kolkata, Ludhiana, Mumbai, Pune, Tuticorin and Tirupur. Logwin currently employs around 100 staff in India. Well positioned – focus on growth Logwin intends to continue it’s successful development in the Indian market through further growth. The company provides reliable logistical services for customers in the manufacturing industry as well as for the constantly growing consumer goods sector. It’s portfolio of services includes international air and sea freight, customs clearance, project management and warehousing.

21.05.2014 Company Press Release(s)

Philippine The government of the Philippines' auction of the PHP 65bn (USD government auction 1.47bn) Light Rail Transit Line 1 (LRT 1) Cavite extension project has of USD 1.47bn Light been scheduled for next week, Business World reported. The report cited Rail Transit Line 1 a revised concession agreement which detailed the LRT-1 contract. This Cavite extension revision came after last August's failed bidding process which saw just project set for next one bid submitted. The winner of the bidding process will be expected to week pay 30% of the project's costs; the Philippine government will pay the remainder. The winner will also be granted a 32-year licence to operate and maintain the line. It was previously reported that six groups were Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, June 2014

interested in the auction: a consortium between Ayala and Metro Pacific Investments, DMCI Holdings, AlloyMTD Group, San Miguel, Megawide Construction and Globalvia. Executives from both AlloyMTD and Metro Pacific Investments were cited in the report as saying that their companies intended to bid next week.

21.05.2014 Business World

Geodis in advanced Geodis, the French logistics, freight and delivery group, is understood to talks to sell Ciblex be in advanced talks to sell Ciblex, its express delivery subsidiary, to French daily Les Echos reported. The report cited a person familiar with Eurotranspharma – the matter as saying that the party discussing with Geodis for several report (translated) months now is Eurotranspharma, specialised in logistics for the pharmaceuticals sector. The report claimed that the central works council of Ciblex was informed last month, and one labour union member said that the sale price could amount to one symbolic euro. Ciblex, with 760 employees, reported losses of EUR 7.3m on revenues of EUR 163m in 2012.

20.05.2014 Les Echos

Leo Express in talks The Czech alternative railway operator, Leo Express, is in talks with an with undisclosed investor which is interested in acquiring up to one third of the company, investor a Czech-language report by Hospodarske Noviny said. The item cited the (translated) owner of Leo Express, Leos Novotny, as saying that as per current talks, the investor would pay CZK 400m (EUR 14.6m) for a 16% stake in the company. However, should the investor want to acquire further shares, they would be more expensive, he added, the item noted. The company is negotiating with other potential investors for minority stakes in the company as well, the article said. Novotny did not wish to disclose the identity of the investor for now, specifying only that the investor is well established in the European market, the report noted. Novotny said the new investor will help strengthen Leo Express' position in the ongoing dispute with the Czech, state-owned, railway provider, Ceske drahy. The item said Express has demanded CZK 380m (EUR 14m) from CD for dumping prices on the tickets for the route from the Czech capital Prague to the country's third larges city, Ostrava.

20.05.2014 Hospodarske Noviny

IJS Global acquired IJS Global, the Schiphol, Netherlands-based logistics company, has been by Nimbus acquired by Nimbus, DVZ reported, citing a company press release. The (translated) German-language trade publication said Nimbus will provide the necessary capital for IJS Global's growth. The current management team led by CEO Sjoerd van Loon remains with Mike Gillett joining the company as the chief operating officer. Financial terms were not mentioned. IJS Global was founded by private equity firm Brynwood Partners in 2004.

19.05.2014 DVZ

Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, June 2014

TTG eyes CIS buys Pan-CIS search for targets Priority on deals valued at USD 50m - USD to mitigate market 250m Buyside advisory mandates could be on offer The Tengiz downturn in core TransGroup (TTG), a Kazakhstan-based, privately held holding company businesses, focused on rail and related logistics operations, is scouting for chairman says acquisitions, Chairman Yuri Shneidmyuller said. It will prioritize its core domestic market but targets with “the right valuation” anywhere in the CIS could be considered. It is primarily interested in targets valued between USD 50m and USD 250m but would review other attractive offers, he said. Management would consider acquisitions across all rail- based business sectors with a priority on players offering rolling stock repair, maintenance and related services, the executive said.

19.05.2014 Proprietary Intelligence

Addison Lee The founder and chairman of Addison Lee has resigned from the chairman and London-based taxi company, The Daily Telegraph reported. A founder resigns spokesperson for the business confirmed John Griffin had stepped down to leave more room for newer generations, the report said. It noted that no successor has been announced yet but Griffin's replacement is thought to be someone from the technology sector who can help the company increase its digital presence. Addison Lee is majority owned by the private-equity house Carlyle, which is believed to have paid GBP 300m (EUR 368m) for its stake a year ago, the item noted.

19.05.2014 Daily Telegraph

Georgian Railways Georgian Railways, the state-owned rail operator, plans to sell a to float minority minority stake through an initial public offering within two years, said stake on LSE in 12- George Kvirikashvili, Vice Prime Minister, who is also the minister of 24 months economy and sustainable development. The listing on the London Stock Exchange could happen as early as next year, deputy minister of economy Ketevan Bochorishvili said. A flotation of a minority stake could be followed by a larger sell-down by the government in the long term, Kvirikashvili added. Previous plans to list a 24% stake on London Stock Exchange in 2012 were cancelled due to “challenging capital market conditions”, the government said at the time. The listing via the issuance of global depositary receipts was pulled a week after setting an IPO price range of USD 15.25-19 per share, valuing the firm at up to USD 1bn. According to a previous report, the IPO was then slotted for 2014. But the government wanted to take a little longer to list the company in order to improve results and its subsequent valuation ahead of the offering, Bochorishvili said. Georgian Railways posted 2013 full-year annual revenues of around GEL 480m (USD 273m), 2.1% up from 2012. Annual EBITDA up to 31 December 2013 amounted to GEL 223m, implying an EBITDA margin of 47.8%.

16.05.2014 Proprietary Intelligence

Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, June 2014

Ukraine prepares Ukraine is to pursue an ambitious privatization program with over 100 privatization companies potentially concerned, Minister of Economic Development programme, may Pavel Sheremeta told this news service on the sidelines of the European include Ukrainian Bank for Reconstruction and Development (EBRD) Forum in Warsaw. Railways and State-owned companies such as Ukrainian Railways, as well as Naftogaz Naftogaz - minister Ukrainy, should be on the list, Sheremeta said, adding that this was the recommendation that he would make to the government. The list of companies to be offered to investors through privatization program is to be prepared within the next two or three months, he said. Ukraine will cooperate with international advisers, including EBRD, Sheremeta said. According to a March 2014 Standard and Poor's statement, Ukrainian Railways' expectation of cash and cash equivalents for the next twelve months were to amount to between UAH 300m (USD 25m) and UAH 340m as of the beginning of 2014. Gas provider Naftogaz Ukrainy is expected to post a deficit of UAH 62bn (USD 5.44bn) in 2014, as reported. A Ukrainian privatization authority spokesperson told this news service that several large state enterprises are expected to be put on the block in the light of the new authorities' renewed orientation toward the EU and the need to fill state coffers. However, the government has yet to get the ball rolling, and with civil war looming, any asset auctions will follow elections this month and in the autumn.

16.05.2014 Proprietary Intelligence

FERS outlines Far East Railway Service Co (FERS Co.), a Russian railways-focused conditions for a developer of infrastructure projects , is considering selling a majority possible majority stake, CEO and majority owner Alexei Lishbergov said. Management equity sale would also listen to offers for a minority stake. The company is ready to entertain offers. It will use in-house advisors to oversee any transaction, the CEO said. An offer in the range of USD 30m - USD 130m would be enough to interest the company in a stake sale, the executive told this news service at the ongoing Adam Smith's Annual Russian & CIS Coal Summit in Moscow. Offers for a minority stake up to 49% will be reviewed primarily on the financial attractiveness of the offer but a majority stake sale would depend on additional factors, including the bidder’s background and expertise in railway-focused freight and related business services their vision for FERS and their readiness to make a long-term commitment. Russian investors including Uralswagonzavod (UWZ) and business structures affiliated with the Russian multi- billionaire business tycoon, Gennady Timchenko, have sought majority ownership or a takeover deal of FERS in the past, but their offers did not meet the company’s criteria. Representatives of UWZ and Timchenko could not be reached for comment. The capital raised would be used to augment in-house resources to rollout several projects, one of which is the development of a trans-border rail link between Lesozavodsk in the far-east Primorsk region and the border city of Hulin in China, Lishbergov said. The 60km project is being funded by FERS and its Chinese partners, which he declined to identify. FERS will inject the Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, June 2014

ruble (RUB) equivalent of USD 30m into the project, while the Chinese partners have pledged almost USD 100m, he noted. The project should minimize or eradicate most problems encountered by exporters and importers in Sino-Russian border area. It will have the capacity to handle up to 3m metric tons of processed timber a year, up to 1m tons of fertilizers, up to 3m of oil and related byproducts, and up to 3m tons of metal ores and ore concentrates. It could increase the countries’ average bilateral trade flow by no less than 10m tons a year in the most conservative scenario, the executive said. FERS is also involved in cargo shipment and the provision of related logistics services, amongst others. The executive declined to disclose FERS’ exact financials, citing confidentiality, but said the firm has an investment portfolio worth no less than USD 100m.

15.05.2014 Proprietary Intelligence

NNL LT seeks NNL LT, a private equity-backed Lithuanian logistics and warehousing acquisition targets company, is actively looking for acquisition targets in Latvia, Estonia, in Baltics and and Poland, said Director Danielius Merkinas and board member Poland Sarunas Siugzda. The company is interested in providers of independent frozen and chilled food logistic services to third parties, Siugzda said. Apart from temperature logistics, NNL LT is also interested in companies that provide partial truckload freight services, Merkinas added. Siugzda said NNL LT would look at both acquisition and merger options. The EUR 6.4m turnover NNL LT hah had discussions with Latvian companies in the past, although it is not currently holding any talks, Merkinas added. NNL LT is not using any advisers for market screening, the same executive said, adding that it would welcome target offers. The company would likely hire a legal adviser for possible deals at a later stage, he added. The company would finance potential buys through a mix of its own resources, bank loans, and financing from its co-owner, Lithuanian private equity firm LitCapital, according to Merkinas. LitCapital invested in NNL LT in 2012. LitCapital is not considering an exit in the near term, said Siugzda, who is also the managing partner at LitCapital. Selling the portfolio company will be more relevant in two or three years, he added. Apart from LitCapital, NNL LT’s management also has a stake in the business.

15.05.2014 Proprietary Intelligence

Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, June 2014

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