MOSCOW, November 3 (RIA Novosti) - The European Bank for Reconstruction and Development said Friday it plans to acquire a minority stake through the first international public offering by WGC-5, one of Russia's six wholesale power generating companies.
The bank will buy "up to 10% of the company's common shares in an open subscription at the final offering price of $0.09 per share," with "total investment not to exceed of $45.9 million," an EBRD news release said.
The offering constitutes 14.4 % of WGC-5's share capital, totaling 30,271,685,504 rubles ($1.13 billion), and is part of a strategy of its controlling shareholder, Unified Energy Systems (UES), to raise private funds on the open capital market for investment in the power sector. The share issue will reduce the largest Russian power utility's 87.67% stake in WGC-5 to around 75%.
The proceeds of the offering will be used to renovate WGC-5's four main power stations, as well as for investments in additional capacity to help meet Russia's growing electricity demand.
The bank will buy "up to 10% of the company's common shares in an open subscription at the final offering price of $0.09 per share," with "total investment not to exceed of $45.9 million," an EBRD news release said.
The offering constitutes 14.4 % of WGC-5's share capital, totaling 30,271,685,504 rubles ($1.13 billion), and is part of a strategy of its controlling shareholder, Unified Energy Systems (UES), to raise private funds on the open capital market for investment in the power sector. The share issue will reduce the largest Russian power utility's 87.67% stake in WGC-5 to around 75%.
The proceeds of the offering will be used to renovate WGC-5's four main power stations, as well as for investments in additional capacity to help meet Russia's growing electricity demand.
WGC-5 is one of the six wholesale power generating companies established as part of UES's restructuring in September 2004. Its plants are located in some of Russia's fastest growing regions, including the Urals.
The company's installed capacity is 8.67 GW, or 4% of Russia's total generating capacity, and its electricity output constitutes 3.8% of the nation's total.
The company's installed capacity is 8.67 GW, or 4% of Russia's total generating capacity, and its electricity output constitutes 3.8% of the nation's total.
