Rosseti is negotiating acquisition of control in LOESK; agreement might come in near future

ST. PETERSBURG. June 7 (Interfax) - Rosseti PJSC hopes to soon agree on the acquisition of 76% of LOESK (Leningrad Region Electrical Grid Company), Rosseti CEO Andrei Ryumin told reporters on the sidelines of SPIEF.

"We are considering purchasing a stake in the company. We are negotiating with the owner of 76% of the shares," he said.

Ryumin said that the remaining 24% belongs to the Leningrad region. "I hope that we will come to an agreement in the near future. In general, we are interested not only in the consolidation of LOESK, we are also negotiating with other regional grid companies," he said.

As reported by the Fontanka publication, Rosseti's subsidiary Lenenergo was negotiating the acquisition of 75% + 1 share of JSC LOESK. According to the publication, Rosseti approached Russian President Vladimir Putin with this proposal, which he approved. The transaction amount could range from 3 billion to 5 billion rubles.

The Leningrad Region owns approximately 24.9% of the company, while the rest belongs to individuals, businessman Ilya Traber in particular, Fontanka said.

JSC "LOESK" was founded in 2004 out of 15 municipal electrical grid companies in the Leningrad Region. The company has six branches, which provide power to about 150 settlements in the Leningrad region with a combined population of over 1 million people.