OREANDA-NEWS. October 25, 2010. NOT BE DISCLOSED, PUBLISHED OR DISTRIBUTED, IN PART OR IN WHOLE, IN THE UNITED STATES OF AMERICA, CANADA, JAPAN OR AUSTRALIA.

THIS STATEMENT AND THE INFORMATION CONTAINED THEREIN ARE LIMITED IN DISTRIBUTION AND ARE NOT INTENDED FOR DISCLOSURE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN PART OR IN WHOLE, IN OR FROM THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION WHOSE LEGISLATION PROHIBITS SUCH ACTS. THIS STATEMENT DOES NOT CONSTITUTE AN OFFER TO SELL SECURITIES OR A CALL TO PURCHASE SECURITIES OR A SUBSCRIPTION TO SECURITIES IN THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN. PLEASE READ THE IMPORTANT NOTICE GIVEN AT THE END OF THIS STATEMENT.

The Board of Directors of Russian Railways has approved the sale of no more than 35% minus 2 shares of the capital of TransContainer through a public offering, reported the press-centre of Russian Railways.

The Board of Directors of the Open Joint Stock Company Russian Railways approved a number of transactions as part of the planned international offer to sell existing ordinary shares of TransContainer ("TransContainer" or the "Company") ("the Offer") to Russian and foreign investors through a public offering of no more than 35% minus 2 shares of the charter capital of TransContainer, a key subsidiary of Russian Railways in intermodal container shipping and integrated logistics.

The Offer of TransContainer shares will be the first public offering of shares in a subsidiary of Russian Railways and a key stage in the reform of Russia’s railway industry. On 5 October 2010, the Russian government approved the sale to Russian Railways of not more than 4,863,170 shares, representing 35% minus 2 shares of the Company.

The Offer will consist only of existing shares in the form of ordinary shares, subject to obtaining all necessary permits and global depositary receipts. It is assumed that the GDRs will be admitted to listing on the London Stock Exchange. Shares in TransContainer are quoted on the "I" list of the Open Joint Stock Company RTS Stock Exchange and on the "I" list of the Closed Joint-Stock Company Moscow Interbank Currency Exchange.

Global coordinators and bookrunners on the Offer were selected by tender and are J.P. Morgan, Morgan Stanley and Troika Dialog. TKB Capital is a co-bookrunner on the Offer.


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TransContainer is a subsidiary of Russian Railways, which holds 84.9999% of TransContainer’s share capital. TransContainer specialises in intermodal container traffic and also provides services in integrated logistics. TransContainer operates about 25,500 platforms, which in 2009 transported about 1.1 million TEUs (twenty-foot equivalent containers) and in the first half of 2010 0.55 million TEUs.

The Company also operates its own network of rail terminals at 46 railway stations from St. Petersburg to Vladivostok in Russia and one terminal in Slovakia. Cargo turnover at TransContainer terminals was about 1.46 million TEUs in 2009 and 0.73 million TEUs in the first half of 2010.

In 2009, TransContainer’s revenues were 16.4 billion roubles (about 537 million dollars). The Company’s assets as of 31 December 2009 were 30.7 billion roubles (about 1,016 million dollars).