| WYG International is providing advisory services to a major Italian ship owning and trading company – Coeclerici – who are strengthening their links with Russia and developing strategic partnerships with Russian enterprises. Since early 2002, WYG International has been advising Coeclerici on technical and financial issues, has carried out enterprise diagnostics, developed business plans and made investment appraisals. Coeclerici has concluded a long term contract with Murmansk Commercial Port and is presently evaluating options for upgrading materials handling facilities. This is expected to result in an investment by Coeclerici in EU technology and equipment to reduce operating costs and ensure optimum product quality. WYG International is acting as independent advisor to Coeclerici in their relations with potential EU equipment suppliers. WYG International's consultants have participated in negotiations with Coeclerici’s potential strategic partners, assessed working practices and advised on the reasonableness of tariffs and handling charges, benchmarked against Russian and international good practice.
One of the routes to strategic partnership considered by Coeclerici included purchasing shares at a privatisation auction in parallel with a share purchase by a potential strategic partner. WYG International was asked to assess the merits of the acquisition and the risks involved. After a comprehensive review of the assets, WYG International produced forward projections of P&L and concluded that the minimum asking price for the auction was unrealistically high. Coeclerici accepted this advice and did not proceed with a bid. Subsequently the financial results from the potential acquisition substantiated WYG International’s recommendation.
Following an appraisal carried out by a WYG International team, Coeclerici has proceeded with financing the development in West Siberia of a new source of raw materials to be shipped from its facilities at Murmansk. WYG International is responsible for monitoring the progress of construction and authorising the disbursement of the Coeclerici financing to its strategic partner and for providing advice to ensure that the financing is optimally used.
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