Globaltrans Looks to Next Phase After Exits of Mishin, Other Founders

Globaltrans, operating one of the largest freight-rail fleets in Russia and the CIS countries, is moving into the next era of its history after the exit of several founding partners. Nikita Mishin, Konstantin Nikolaev and Sergey Maltsev sold their stakes in January while Alexander Eliseev is in the process of selling his shares. This marks a major change for the group, which they co-founded in 2004, as well as for the investors. Mishin, for example, indicated that now, as a private investor, his focus is on pursuing educational philanthropy full time.

Since its successful IPO on the London Stock Exchange in 2008, Globaltrans has experienced remarkable growth, more than doubling its size. The company has made a name for itself by transporting bulk and liquid cargo across the CIS states, cementing its position as a key player in the region’s logistics landscape.

Controlling interest in Globaltrans was acquired by Aqniet Capital, a Kazakhstan-based investment company headed by entrepreneur Kairat Itemgenov, one of the country’s richest citizens. Once the final transaction is complete, Aqniet will own 31.62 percent of Globaltrans’ issued share capital with full associated voting rights. The majority of Globaltrans shares (56.2 percent) remain in free-float.

Itemgenov, who joined the board in April, took on the titles of executive director and chief strategy officer of Globaltrans. He has said he supports the company’s strategy.

“This investment offers me a unique opportunity to both diversify into an attractive sector and acquire a significant holding in a business that has a proven operational model, excellent prospects, a prominent market position and a strong corporate governance framework,” Itemgenov said in a release when the transactions were announced.

Globaltrans’ 2023 annual report, released in April, showed the company’s revenue rose 7 percent to $986 million with EBITDA up 6 percent to $590 million, compared to 2022. Average price per trip was up 10 percent in 2023.

Company fleet size stood at 65,644 units, including 66 locomotives, hauling 138 million tonnes/kilometer of freight. Globaltrans has a 6.4 percent market share.

In the operations section of the company’s annual report, Globaltrans stated that empty run ratio for its gondola cars in 2023 significantly improved to its lowest level in more than 10 years at 36 percent.

Freight rail turnover (including engaged fleet) declined 2 percent year-on-year reflecting volatility in logistics and continued rail network infrastructure constraints, the company reported.

Globaltrans said it maintained its focus on client retention with all service contracts due for renewal extended. Service contracts contributed about 61 percent of the group’s net revenue from operation of rolling stock in 2023.

Specialization was enhanced across subsidiaries with liquid cargo and locomotive expertise consolidated within BaltTransServis, enabling currently leased-out railcars to be gradually switched into operation. In November of last year, rating agency Expert RA upgraded Globaltrans to ruAAA from ruAA+. The outlook for the rating is stable, Globaltrans announced.

In March, Globaltrans announced the completion of its re-domiciliation from Cyprus to the Abu Dhabi Global Market and the dematerialization of its shares following a resolution passed at its Extraordinary General Meeting (EGM). This decision marks a significant shift in the company’s share management as it transitions from physical paper certificates to an electronic system in compliance with the regulations set forth by the Abu Dhabi Global Market.

Aqniet began life with a single pharmacy in Shymkent, Kazakhstan, in 1995. Now, it owns large pharmacy chains Europharma and Arzan Pharm, as well as superstore chain Arzan Market, and is one of the country’s most valuable companies.

Itemgenov’s other businesses include hotels, logistics company Satti Logistics and KBI Energy, which installs and repairs large-scale power generating equipment. In the wake of devastating floods in Kazakhstan in April of this year, Itemgenov donated $2.9 million to relief efforts. In 2023, he was included in Forbes Kazakhstan’s lists of 50 Most Influential Businessmen of Kazakhstan and 50 Richest Businessmen of Kazakhstan.