February 23 (SeeNews) - Romanian freight forwarder Trade Transport Services [BSE:TTS] has informed the market about the conclusion of a preliminary agreement for the acquisition of an unnamed local port operator for 21.8 million euro ($23.1 million).
Following the transaction, which shall be completed by June 30, TTS will own 99.9% of the port operator's share capital, the company said in a report filing to the Bucharest Stock Exchange last week.
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TTS said the targeted company owns operative berths, quay cranes, railway lines, storage platforms, and warehouses, which are complementary assets to the freight forwarder's current capabilities.
The transaction is to be funded through a combination of TTS's own funds and credit facilities secured from banks. The payment will be made in a single installment, according to the agreement.
Founded in 1997, TTS is the parent company of TTS Group, a provider of integrated logistics services on the Danube river. The group operates in nine countries across services such as freight forwarding, inland waterway transport, port operations, as well as other related activities, covering over 100 ports and port terminals.
TTS shares traded 1.92% lower at 13.28 lei ($2.86/2.7 euro) as of 1359 CET on Thursday on the main market of the BVB.
(1 euro=4.91464 lei)