Region IC to buy part of FGC's stake in Inter RAO - paper
MOSCOW. June 18 (Interfax) - Federal Grid Company UES (FGC) will sell only a 10% stake in Inter RAO , including 6.33% to Inter RAO Capital and 3.67% to Region IC, national daily Kommersant reported on Monday, citing sources.
RusHydro will sell its whole stake in Inter RAO to Inter RAO Capital, which already owns 18.37% of shares in its parent company, the paper said.
As a result, Inter RAO Capital will consolidate a 29.8% stake (including 0.4% owned by senior executive), but will not exceed the 30% threshold that requires a mandatory offer to minority shareholders, the paper said.
The order on the deal with FGC was signed on June 13, while the order concerning RusHydro's stake has not been approved yet, one of the paper's sources said. The deal with RusHydro is expected to be closed at the end of June, and the one with FGC "a little later."
The paper's sources said FGC decided not to sell its whole stake because it believes Inter RAO shares are undervalued and it is counting on dividends. FGC will use the proceeds from the sale to finance its investment program; there are no plans to pay special dividends to Rosseti .
RusHydro will use the proceeds from its deal to finance construction projects in Russia's Far East, the paper said.
The deals will be priced at a little more than 3.34 rubles per share, which is the weighted average price of Inter RAO shares in the preceding six months. The shares were trading at 4.05 rubles on the Moscow Exchange on Friday. The discount to the market is attributed to the large size of the stakes.
Inter RAO Capital will spend about 22.1 billion rubles on buying shares from FGC and 17.17 billion rubles on buying shares from RusHydro, and Region IC will spend 12.8 billion rubles on the shares.
Payment for the shares will be made over 18 months in equal quarterly instalments. A lock-up on selling and pledging shares as collateral will be lifted.
Inter RAO will also get guarantees that the shares will not be sold on the market to "unfriendly shareholders," Kommersant's sources said.