Morgan Stanley’s (MS) infrastructure investment unit has decided to vend the Montreal Gateway Terminals (MGT) partnership, the leading cargo container facility at the Port of Montreal – the second largest port in Canada. As reported by the Wall Street Journal, Morgan Stanley is in talks with Fiera Axium Infrastructure Inc. to sell MGT for over $600 million.
Fiera Axium is an independent Canadian portfolio management firm, which is jointly controlled by Fiera Capital Corporation and Axium Infrastructure Management. The deal for the MGT sale is expected to be announced soon in this month.
The infrastructure investment group of Morgan Stanley had purchased the MGT stake from a German tourism and shipping conglomerate TUI AG for around $400 million in 2007. Further, the remaining stake was bought by the Wall Street giant last year from Hapag-Lloyd AG, the cargo container shipping arm of TUI.
MGT is situated in close proximity to strategic markets in the U.S. and Canada and provides all terminal operations services. MGT is a strategic gateway between North America, Europe and the Mediterranean for shipping containers, given its geographical location and industry control. Moreover, MGT levers majority of the container traffic at the port.
Morgan Stanley has been looking for attractive offers for the MGT sale to capitalize on the renewed global interest in the assets related to ports as well as terminals. With a rise in international trades, the shipping industry and the container sector have come into the focus of the investors looking for global diversification in their portfolios.
Currently, Morgan Stanley holds a Zacks Rank #3 (Hold). Some better-ranked investment managers include FXCM Inc. (FXCM), GAIN Capital Holdings, Inc. (GCAP) and JMP Group Inc. (JMP). All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment