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Russian Power Energy Monopoly To Sell Stake To Germany and Italy

RAO UES of Russia is negotiating the sale of its stake in Mosenergo with German E.ON energy concern and Italian Enel corporation

RAO UES of Russia is negotiating the sale of its stake in Mosenergo at the additional issuing of the company?s stocks with German E.ON energy concern and Italian Enel corporation, RAO UES chief executive Anatoly Chubais said yesterday. Should the talks go through, the funds gained could cover the deficit of Mosenergo?s 20 billion rubles investment program, Russian daily Kommersant reported.

The market capitalization of Mosenergo, Moscow?s electricity grid, amounts to $3.4 billion. RAO UES of Russia holds 50.9 percent in the company (its share will reduce to 35.1 percent after the additional issuing), Gazprombank has 32 percent (22 percent after the issuing), the Moscow government ? some 8 percent (5.5 percent), the management of Mosenergo ? about 5 percent (3.4) and Guta Group has 4 percent (2.8 percent).

RAO UES has planned to put 47 billion rubles into the development of Mosenergo within next five years. The company has found 27 billion to cover the expenses. To attract the remaining 20 billion, RAO suggests an additional issuing of Mosenergo?s stocks worth of up to 45 percent of its authorized capital stock, or 1.5 billion rubles. Mr. Chubais, however, does not maintain if his company was going to buy out stocks of the additional issuing to keep them. It is possible that RAO UES will sell its new stake to foreign partners, and Enel and E.ON.