Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, December 2014 www.pwc.de

Deal News Transportation

& Logistics What's up in your

15. December 2014 market – a focus Research Center on deals activity

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

TRAINOSE binding The binding bid deadline for TRAINOSE, the Greek state-controlled bid deadline could provider of services, is expected to be extended till 2 be extended till 2 February, Ependisi reported. The brief report In Greek cited unnamed February – report (translated) sources. 's Rossiyskie Zheleznye Dorogi (RZD), the lead partner in a consortium with Greece's GEK TERNA, France’s SNCF Participations and Grup Feroviar Roman (GFR), are the shortlisted bidders, as earlier reported.

15.12.2014 Ependisi

GruzoVIG’s equity GruzoVIG, a private Russian logistics and related transportation services sale conditional on provider, sees an equity capital raise amongst its future strategic growth hitting revenue funding options, co-founder and President Valery Karchevsky said. The benchmark – -based firm is currently in talks with several local and foreign executive investors, the executive said without disclosing names, citing confidentiality. Despite ongoing talks, a deal will only be triggered after the firm’s annual revenue hits a minimum of RUB 480m-RUB 720m (USD 9.6m-USD 14.4m) or about RUB 40m-RUB 60m per month, up from the current RUB 20m-RUB 25m per month, he added. The management expects to hit the benchmark within the next two or three years, when a minority equity size [of about up to 33%] will be on sale, said the executive, who co-holds the company with a business partner. Apart from standard logistics services, the firm has also developed a software tool for optimising cargo deliveries. This helps both clients and other sector players to save time, fuel and money, the president said. GruzoVIG’s long-term business growth strategy aims to control at least 3% of the Russian commercial cargo freightage market, which will enable it to generate at least USD 3bn in sales in the most conservative case scenario, the president noted. The immediate goal is to attain the set revenue benchmark to trigger an equity deal, he added.

12.12.2014 Proprietary Intelligence

Transoil plans to Transoil, the Russian rail operator controlled by Gennady Timchenko, acquire 100% stake plans to acquire a 100% stake in intermodal transport company in Infotech-Baltika Infotech-Baltika M, the Russian daily Kommersant reported citing M - report industry sources. The sale-purchase process should take three or four (translated) months, according to one of the sources. In 2013, Infotech-Baltika M posted RUB 456.6m (USD 8.1m) revenue and RUB 7.7m net profit in accordance with the Russian Accounting Standards, the item reported. Infotech-Baltika M operates in the market of cargo transportation using tank containers, and provides services in the sphere of transportation of different types of liquid cargoes, with the use of tank containers on railroad, naval and road transport, according to its website.

12.12.2014 Kommersant

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

Keolis acquires Keolis announced it has finalised the acquisition of the Autocars Autocars Striebig Striebig, leader of interurban bus transportation in the Bas-Rhin (67) for undisclosed department. Founded in 1927, this family group achieved in 2013 a amount turnover of EUR 25m and employs 300 employees. It has six branches, two of which in Germany, and a fleet of 250 buses.

10.12.2014 Company Press Release (Translated)

Ferrovie dello Stato Ferrovie dello Stato (FS) will carry out its privatisation in the first half of to be privatised in 2016, the Italian-language Il Sole 24 Ore reported. The item cited first half of 2016 Michele Elia, the CEO of FS, who said that 2015 would be used to clear up remaining points remaining to the operation. The report said that it had not yet been decided whether to list the whole of FS or parts of the group such as its high-speed operations.

10.12.2014 Il Sole 24 Ore

Intereuropa invites Intereuropa, a Slovenian logistics company, has invited potential letters of interest investors to send letters of interest for a 72% stake, Slovenia Partner for 72% stake reported, citing a company announcement. The sellers include SID banka with an 18% stake, Nova Ljubljanska banka with 16.5%, Gorenjska banka with 11.2%, Raiffeisen Bank with 10.4%, and SKB banka with 8.2%, the report said. In 2013, Intereuropa generated a net profit of EUR 2.1m on sales revenues of EUR 161m, while EBITDA stood at EUR 13.7m, as per the company’s website. A separate report by See News citing local advisory firm Alta Invest noted that Intereuropa’s management hopes to reach sales of EUR 158.8m in 2014 and EBITDA of EUR 15.4m.

10.12.2014 Slovenia Partner

AAR puts Telair on AAR Corp (NYSE:AIR), the US aviation services group, has put its block with possible German subsidiary Telair on the block in a sale process that has seen two EUR 800m price tag private equity groups reach the second round, a newswire reported. - Newswire Round- Citing three unnamed sources, the Reuters report named PE firms EQT up and Cinven as among those to be considered in round two, which kicks off in the new year, the report said, adding that Citi is advising the seller. Telair, which is an air cargo handling company, has an EBITDA of around EUR 80m, and the sale could fetch as much as EUR 800m, according to the report. It said that none of the parties involved could provide a comment.

09.12.2014 Newswire Round-up

Deutsche Post DHL Deutsche Post DHL, the world's leading postal and logistics group, acquires signed an agreement to acquire StreetScooter GmbH, a former start-up StreetScooter that is committed to the mission of developing affordable electric vehicles. As a result of the agreement, which is still subject to antitrust approval, the company will also acquire the development and production rights to vehicles as well as the employees of StreetScooter GmbH. Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, December 2014

StreetScooter GmbH is a spin-off of RWTH Aachen and a consortium of approximately 80 industrial companies in the automotive industry and related sectors. It was established in 2010 and employs a staff of 70 at its base in Aachen. Since 2013, approximately 200 StreetScooters have been produced annually at the former Talbot/Bombardier plant in Aachen. The successful working relationship began with the development of the StreetScooter. About 20 vehicles are already included in the electric car fleet as part of the pilot project CO2-free deliveries in Bonn. In this project, Deutsche Post DHL is converting its entire mail and parcel operations in Bonn, where the company is headquartered, to electric mobility by 2016. Nearly 50 more StreetScooters are being used by various Deutsche Post sites across Germany. By 2015, approximately 100 StreetScooters will be in operation at Deutsche Post DHL.

09.12.2014 Company Press Release(s)

Initial bids Initial bids were yesterday (8 December) submitted for the UK submitted for government’s 40% stake in Eurostar, several sources close to the process Eurostar - sources said. It is understood that a consortium comprised of 3i Infrastructure and Predica, the French life insurance firm, submitted a bid. The infrastructure arm of Ardian, which had been previously linked to the process, is understood to have not submitted an offer. One source said Germany’s is a likely bidder in the sale of the stake in Eurostar, which operates high speed passenger train services between Britain, France and Belgium via the Channel Tunnel. But the German state-backed rail company did not respond to a request for comment on its potential involvement. SNCF, which owns a 55% stake in Eurostar, has some veto rights over the preferred bidder in the sale process, it is understood. The French state-owned rail company favours a long-term investor, and therefore the sale is more likely to attract infrastructure funds rather than private equity investors, sources said. SNCF has previously said that it does not plan to submit a bid for the UK government’s stake - and sources said that SNCF does not have pre- emption rights. The National of Belgium owns a 5% stake in Eurostar.

09.12.2014 Proprietary Intelligence

ATAC attracts Chinese investors are interested in taking a stake in municipally-held interest of Chinese transport company ATAC Roma, Italian language daily Milano Finanza investors reported. The report cited FS Rome city council official Guido Improta (translated) who confirmed that talks were taking place with “Chinese partners”. Improta did not elaborate on the identity of the investors. A previous report in 2012 claimed that the city of Rome, the owner of ATAC, was looking to sell a 40% stake.

09.12.2014 Milano Finanza daily edition

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

AK Worthington AK Worthington and Global Logistics [UK] [including GL Central], the and Global Logistics two Manchester-based logistics companies, have announced that they [UK] in talks to are in the later stages of talks to merge the two businesses as AKW merge Global Logistics. The combined businesses will operate from the newly acquired 12-acre Alba Way site on Trafford Park bringing together two of Trafford Parks most successful logistics companies and creating an ideal platform for further growth. Julian Richards, managing director of the AKW Group said: “A full integration plan is being rolled out and further communications to customers, staff and suppliers will be made at the appropriate time.” Paul Welsh, managing director of Global Logistics [UK], added: “The timing is right for us to join forces. Both companies have a great reputation for delivering quality services to our clients and we will continue to invest in our people, systems and our premises to add value to all of our stakeholders.” AKW Global Logistics will offer a broad range of logistics services including UK & International transport, warehousing and contract packing services to a large client base. The new group will have a turnover of GBP 33m and employ 400 staff.

05.12.2014 Company Press Release(s) (Edited)

Bemuga Forwarders Bemuga Forwarders, a Ugandan freight company, is looking to sell at looks to sell stake, least a 30% stake to a strategic partner, a company source said. Proceeds source says from the stake sale will be earmarked to purchase new equipment and machinery, the source said, declining to provide a price tag for the stake. Bemuga's turnover is more than USD 10m, the source said, adding that it has assets worth more than USD 15m, including the building complex which houses the company’s head office, furnished modern apartments, and delivery motor vehicles, among others. Bemuga has been approached by Switzerland and Denmark-based firms and expects to begin talks with them next week, the source said, declining to name them. However, it remains interested in receiving more approaches from other potential bidders, the source added. Bemuga would prefer to sell the stake to a foreign clearing and forwarding firm, the source said. The company is owned by Ugandan individuals, including Ben Mugasha, the managing director. Internal executives will handle the process, including scouting for potential buyers. The aim is to complete a deal before mid- 2015. A local law firm has been appointed to help with the completion of the deal, he said, without disclosing the name. Meanwhile, the company plans to list on the Uganda Securities Exchange in the next five years to raise capital to fund acquisitions in Kenya and Tanzania, the source said, without giving more details. Bemuga Forwarders was founded in 1999. It has presence in Uganda, Kenya, Tanzania, and South Sudan, the source noted. The company’s services include goods clearance, warehousing and transportation.

05.12.2014 Proprietary Intelligence

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

Italian government The Italian government could spin off the infrastructure of Ferrovie may spin off railway dello Stato (FS), the railway network, before privatising FS, Italian infrastructure language daily Milano Finanza reported. The report cited Maurizio Lupi, before carrying out the Italian Infrastructure Minister, who said that the spin-off would Ferrovie dello Stato allow the railway infrastructure to remain in state ownership. The report privatisation said that the move would also allow for the sale of the rest of FS as a (translated) single concern rather than breaking it up, as removing the high cost of maintaining the railway infrastructure would make the privatisation more attractive to investors. The report said that the government is now aiming to prepare for the privatisation via the floating of a 40% stake on the Italian Stock Exchange by the end of 2015 so that the listing itself can take place in 2016.

05.12.2014 Milano Finanza daily edition

UTi in advanced UTi [UTIW:NASDAQ GS], the Long Beach, California logistics firm, is sale discussions engaged in advanced sale discussions with DSV, the Danish trucking with Danish DSV - company, according to a newswire report. Unnamed people with Newswire Round-up knowledge of the matter told Bloomberg the company has been engaged in discussions regarding a sale since the middle of 2014, and the two might arrive at an agreement this month. But the report also pointed to a statement from DSV saying no discussions were currently occurring, although the statement added that DSV had held talks with UTi on possibly acquiring it. A UTi executive was cited as declining to comment on market speculation. UTi has a nearly USD 1.5bn market value, the article reported, adding that its main shareholder is P2 Capital Partners.

04.12.2014 Newswire Round-up

HZ Cargo may go HZ Cargo, the Croatian state-owned freight carrier, will continue to for renewed sale undergo a restructuring in 2015 and will be considered for a renewed next year sale, according to a 2 December Croatian-language issue of Narodne (translated) novine, the country's official gazette. As reported, the target’s sale to Grup Feroviar Roman, the Romanian rail cargo company, which had offered around EUR 140m for HZ Cargo's 75% stake, was cancelled.

02.12.2014 Narodne novine

EBT stake sold by Gimv has sold its minority interest in European Bulk Terminals (EBT) to Gimv to SEA-invest the SEA-invest group, which specializes in fruit handling. Gimv has been group a shareholder in EBT since 1992. The sale has a positive impact on the last published equity value of Gimv (per 30/09/2014) of EUR 0.5 per share. It was not announced how much SEA, which employs around 5500 people and annually processes around 100m tons of goods, paid for the stake, but according to a report in Belgian financial daily De Tijd it should be around EUR 100m.

29.11.2014 Company Press Release(s)

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

Stada to sell Stada, the German pharmaceutical company, is to sell its warehouse warehouse logistics logistics to Deutsche Post subsidiary DHL, Frankfurter Allgemeine to DHL Zeitung reported, citing information from the vendor. DHL will take over all the 160 employees at locations in Bad Vilbel and Florstadt, the newspaper said. The deal, expected to close in the first quarter of next year, would enable Stada to cut costs on its warehouse employees as they would not be part of pharmaceutical union IG BCE anymore. The warehouse property remains with Stada, the daily said.

28.11.2014 Frankfurter Allgemeine Zeitung

Oesterreichische Oesterreichische Post [OPOST], the Austrian postal service group, will Post rules out definitely not sell its German parcel subsidiary Transoflex, ORF Transoflex sale reported. The Austrian TV broadcaster pointed out that Georg Poelzl, (translated) the chief executive of OPOST, told a local paper that a sale of Transoflex was never on the agenda. The report pointed out that sale rumours regarding Transoflex initially surfaced last year. According to its website, Transoflex generated a turnover of EUR 505m in 2013.

26.11.2014 ORF

TrainOSE bidder The sale process for TrainOSE, the Greek state-controlled provider of interest in danger of rail transport services has hit a stumbling block concerning bidder derailing – sources interest, a person close to the process said. Russia's Rossiyskie Zheleznye Dorogi (RZD), the lead partner in a consortium with Greece's GEK TERNA is the only prospective investor expected to submit a binding bid, the person told this news service. The two other earlier shortlisted bidders, France’s SNCF Participations and Grup Feroviar Roman (GFR) have not yet officially dropped out but are no longer showing interest at this stage, the person said. None of the bidders have officially withdrawn, a source close to the process said. He agreed that the Russian-Greek consortium was still active, but declined to comment on the extent of its interest or on the remaining interest from the other two. It is also too late in this final phase for new bidders to come forward, the source added. A date for binding bids is to be set towards the end of this year or early 1Q15, the person close said. A person close to SNCF said there is “no willingness to buy anything in Greece. International development is instead focused on high speed trains and long distance trains via SNCF subsidiary firms". A spokesperson from SNCF declined to comment. Spokespeople for GFR and RDZ also declined to comment. Even RDZ's interest could be in doubt, a Russian analyst working in the infrastructure space said. “It makes little sense for to invest in the asset. TrainOSE’s business is insignificant in size with most of local logistics based on vehicle transportation," the analyst said. TrainOSE transports about 15 million passengers and 4,500 tons of cargo annually (against 1.4bn tons shipped by RZD in 2013).

25.11.2014 Proprietary Intelligence

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

Russian Railways Further to the announcement on 14 November 2014, JSC transfers full TransContainer ("TransContainer" or the "Company") has announced shareholding of that Russian Railways transferred its full shareholding of 50%+2 shares 50%+2 shares in in TransContainer to the share capital of United Transportation and TransContainer to Logistics Company ("UTLC") on 24 November 2014. As previously UTLC disclosed, upon establishment the share capital of UTLC amounted to RUB 39.7bn (USD 883m), with Russian Railways holding no less than 99.84% of the share capital of UTLC, and Belorussian Railway and JSC Temir Zholy each holding up to 0.08%.

25.11.2014 Stock Exchange Announcement*

RZD and fail The Russian government and RZD are no longer considering options to to reach agreement provide support to metals and mining group Mechel with the on sale of Ulak-Elga participation of RZD, the online edition of Russian-language daily rail line (translated) Vedomosti reported on 20 November. The report cited RZD President Vladimir Yakunin as saying that the parties failed to reach an agreement on the sale of Mechel’s railway line running to the Elga coal deposit. The sale of Mechel’s Ulak-Elga railway line to RZD is unrealizable as the government is not ready to provide additional capitalization to RZD for this purpose, Russian daily Kommersant reported today (21 November), citing Yakunin. The transfer of Ulak-Elga to RZD for free was objected by Mechel’s creditors, Yakunin also confirmed. Previous plans called for the sale of Ulak-Elga to RZD for RUB 70bn (USD 1.5bn), Kommersant reported. A spokesperson for Russia's Prime Minister said yesterday that a meeting addressing the situation at Mechel is not being planned by the end of this year, Kommersant added.

21.11.2014 Kommersant

Italian minister Pier Carlo Padoan, Italy's economy minister, has called for a quick calls for swift privatisation of Italian railway network Ferrovie dello Stato (FS), Italian- Ferrovie dello Stato language daily Milano Finanza reported. The report added that Padoan privatisation made his comments following the creation of a working group towards a FS privatisation; Michele Mario Elia, the CEO of FS, has said that the privatisation via an IPO is likely to take place in a year-and-a-half. As previously reported, seven major banks, present at talks where a possible listing was discussed, could be in the running for mandates if or when the sell-off is decided upon.

20.11.2014 Milano Finanza daily edition

Hitachi seeking Hitachi [TYO:6501] is seeking M&A deals in the railway sector in M&A deals in , the Nikkan Kogyo Shimbun reported. The Japanese- Southeast Asian rail language report cited President and COO Toshiaki Higashihara, who sector (translated) told the paper that the company has railway production facilities in Yamaguchi and in the UK, but going forward those will not be enough for its plans, even with the inclusion of the company's maintenance facilities. Although the actual location has not yet been decided, an M&A Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, December 2014

deal or a collaboration with another company will become necessary, he said. Hitachi received a JPY 2.7bn (USD 23m) order from Singapore- based Sentosa Development to provide railway cars and a wireless signal system for its city transport routes, the report said. Hitachi will set up a signal system planning and engineering unit in Singapore in April 2015, which will become the base for all of Asia, Higashihara said. Hitachi is aiming for net sales of JPY 200bn in its railway division for FY15, the report said. Earlier this week, Italian defence group Finmeccanica [ITA:FNC] announced it had received an offer from Hitachi for its railway assets, manufacturer Ansaldo Breda and listed railway signalling manufacturer Ansaldo STS [ITA:STS]. The offer was subsequently reported to be worth JPY 200bn.

19.11.2014 Nikkan Kogyo Shimbun

Unipost owners Unipost, the Spanish postal delivery company, has been put on the appoint Deloitte for market by its owners, Deutsche Post (37.69% stake) and the Raventos possible sale – family, Expansion reported. Deloitte has been appointed to handle the report (translated) sale, the Spanish-language report said, citing people with knowledge of the situation. According to the report, Unipost had sales of EUR 86m in 2013.

17.11.2014 Expansion

General Secure Carlyle Cardinal Ireland (CCI), the Irish private equity fund formed by Logistics Services The Carlyle Group (NASDAQ: CG) and Cardinal Capital, today receives investment announced it has invested in General Secure Logistics Services (GSLS), from Carlyle an Irish Cash Management Solutions provider. GSLS provides a Cardinal Ireland comprehensive cash logistics service, including cash in transit services, cash processing and the supply of notes and coins to an array of businesses across the Republic of Ireland. Equity for the investment came from CCI, a EUR 292m Irish private equity fund focused on growth capital and buyout investment opportunities across Ireland. The investment was completed on 30 September 2014..

17.11.2014 Company Press Release(s)

Cefrusa begins Cefrusa, a Spanish logistics company specialising in refrigerated insolvency transportation, has begun insolvency proceedings, trade publisher proceedings - report Alimarket reported on Wednesday, 12 November. The Spanish-language (translated) publication cited unidentified sources in the Barcelona company who acknowledged the company was experiencing temporary financial problems but insisted it was continuing to operate normally. Cefrusa posted sales of EUR 15.13m last year, 55% higher than the 2012 figure of EUR 9.71m. Part of the company’s growth in revenue can be attributed to its acquisition of Logiscar Temperatura Controlada at the end of 2012, the publication noted.

14.11.2014 Alimarket

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

Contact Bernhard Möller Andreas Mackenstedt Friedrich-Ebert-Anlage 35-37 Friedrich-Ebert-Anlage 35-37 60327 Frankfurt am Main 60327 Frankfurt am Main [email protected] [email protected] Tel.: (069) 95 85-10 33 Tel.: (069) 95 85-5704

Legal Disclaimer: The information included in this Newsletter is only meant for general information purposes and not intended to replace consultation with respect to concrete technical advice. We accept no responsibility for any actions taken as response hereto. While we have made any attempt to ensure that the information contained in this Newsletter has been obtained and arranged with due care, we accept no responsibility for the completeness of the information. Certain references in this Newsletter provide you with further information or with pronouncements maintained by third parties over whom we have no control. We make no representations as to the completeness or any other aspect of such information or pronouncements.

The Newsletter is solely meant for your information; the Newsletter or copies thereof shall not be passed in whole or in part to any third party and is not to be published or referred to in a public document, the internet or any other public media.

We would like to emphasize that the special features of electronic mails incur the danger of technical problems (e.g. caused by viruses). Therefore we may not accept any responsibility for the integrity of our e-mails after they have left our sphere of control. © December 2014

www.pwc.de