Majority owner of Russia's TGK-14 reduces stake to 74.6% after SPO

CHITA. Oct 8 (Interfax) - JSC Far East Management Company (FEMC), the majority shareholder of the PJSC TGK-14 generating company, has reduced its stake in TGK-14 to 74.62% following the latter's secondary public share offering (SPO), the genco said.

Prior to the SPO, FEMC owned 85.48% of shares.

The company now has a shareholder structure where 74.62% belongs to FEMC and free float is at 19.86%, versus 9% before the SPO. TGK-14 did not say who owned the other 5.52%.

As reported, TGK-14 said on September 24 that it would hold an SPO on the Moscow Exchange. FEMC intended to sell up to 20% of the shares during the SPO, but only sold 10.86%. The offering totaled 1.5 billion rubles with a price of 0.01 rubles per share.

At least 65% of the funds raised - minus the costs of organizing the transaction and taxes - will be used to pay off the shareholder's debt to TGK-14.

PJSC TGK-14 provides thermal energy to consumers in the Trans-Baikal Territory and Buryatia. The company includes seven thermal power plants, two power complexes with installed electric capacity of 649.57 MW and a thermal capacity of 3,120.77 Gcal/h.

According to TGK-14, the co-owners of the FEMC are the former head of the corporate finance department of Russian Railways - former CEO of Sinara-Skoda LLC Konstantin Lyulchev with 78% and Viktor Myasnik with 22%. The latter was the CEO of TGK-14 in 2015-2017, and then was appointed head of the Directorate for Major Repairs and Reconstruction of Railway Electrification and Power Supply Facilities, a branch of Russian Railways.