Inter RAO might buy power equipment manufacturer Elsib from SUEK - newspaper

MOSCOW. June 10 (Interfax) - Russian energy Inter RAO is in negotiations to buy power equipment manufacturer Elsib from coal giant SUEK, national daily Kommersant reported on Monday, citing sources.

The talks are at an advanced stage and the deal could be closed as early as July, the paper said.

Kommersant reported market sources as estimating Elsib's value at 10 billion-13 billion rubles, but they could not specify the price of the deal with Inter RAO.

Elsib specializes in designing and building hydro and turbine generators, and induction and synchronous motors for various sectors of industry. The company closed 2023 with a net profit of 661 million rubles on revenue of 7.3 billion rubles to Russian Accounting Standards.

This would not be Inter RAO's first acquisition in the power engineering industry, which the company has said will become a key segment of its business in the near future.

In the spring of 2024, Inter RAO completed the acquisition of the Ural Turbine Plant. In 2022, it bought Siemens Energy's 65% stake in Siemens Gas Turbine Technologies LLC, a joint venture with Power Machines, as well as Siemens Energy's Voronezh plant, Voronezh Transformer LLC (formerly Siemens Transformers LLC). In 2021, the group spent 46.9 billion rubles on the acquisition of 11 engineering companies and information technology company Sigma.

Inter RAO's principal shareholder at the end of 2023 was state company Rosneftegaz with 26.37%, while Inter RAO Capital held 29.56% of stock. At the end of 2021, PJSC Federal Grid Company - Rosseti (formerly FGC UES , now merged with Rosseti) owned 8.57% of Inter RAO and the free float was 34.24%.