Italy’s Enel raises its stake in Russian power generator OGK-5 to 37%

Green Energy

Enel SpA, Italy’s largest power company, said on Thursday it had increased its stake in Russian wholesale power generator OGK-5 to 37.15%.

Enel’s wholly-owned Dutch subsidiary Enel Investment Holding B.V. signed late on Wednesday a $432 million agreement on purchasing around 2.5 billion shares in OGK-5 from Credit Suisse, representing about 7.15% of the company’s share capital, at 4.26 rubles ($0.17) per share. Enel, Europe’s third largest listed utility by market capitalization, has become the first foreign company to acquire generating assets in Russia in the process of power sector reform.

The Italian company previously held a 29.9% stake in OGK-5. On June 6, at an auction in Moscow, Enel acquired a 25.03% stake in OGK-5 and bought another 4.96% on June 22 to bring its stake in the Russian wholesale power generator up to 29.99%. In August it received authorization from Russia’s Federal Anti-Monopoly Service (FAS) to acquire over 70% in OGK-5.

OGK-5 includes four thermal power plants with total capacity of about 8,700 megawatts, and is one of the most valuable assets spun off from Russian electricity monopoly Unified Energy System, which holds a 50% stake in the company. The Russian power sector has undergone radical changes in recent years aimed at increasing the efficiency of power plants and developing the industry by attracting investment. During the restructuring process, specialized structures have been created in place of the old vertically integrated companies. By the end of the reforms, potentially competitive parts of the industry - generation, sales and repair companies - will become mainly private and will compete with each other. However, natural monopoly functions - power transmission and dispatching - will remain state-controlled. (rian.ru)

ADVERTISEMENT

European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.