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Russia's UES to sell stakes in OGK-4, TGK-1 in July

Russia's electricity monopoly Unified Energy System intends to sell majority stakes in wholesale generating company OGK-4 and territorial generating firm TGK-1 in July, a UES board member said Tuesday.

The sale will include newly issued shares in the generating assets, Yuri Udaltsov said. „We are planning to carry out new transactions every month. In particular, we plan to sell 64% of shares of OGK-4 and 57% of shares in TGK-1,” he said. Russia's power sector is undergoing radical changes aimed at increasing the efficiency of power plants and developing the industry by attracting investment. Once the reforms are complete, the potentially competitive sectors of the industry - generation, sales and repair companies - will become mainly private and will compete with one another. However, natural monopolies - power transmission and dispatching - will remain state-controlled.

Sergei Dubinin, the CFO of Unified Energy System (UES), said earlier the monopoly planned to offer UES-owned stakes and newly issued shares in OGK-4 and TGK-1 in July-August. OGK-4, which incorporates five thermal power plants, will offer newly issued shares representing 31.89% of its charter capital after placement, while UES will sell its stake representing about 32% of OGK-4's enlarged charter capital, Dubinin said. After the share sale, the UES' equity in the charter capital of OGK-4 will drop from 89.60% to not less than 28.76%, Dubinin said.

TGC-1, which incorporates 55 electric power plants, will also place newly issued shares representing 39.03% of its enlarged charter capital, while UES plans to sell its stake in the company amounting to about 18% of TGC-1's charter capital, including the newly issued stock, Dubinin said. After the sale, the shareholding of UES in the charter capital of TGK-1 will drop from 55.62% to not less than 15.98%, Dubinin said. (rian.ru)