17 Nov 2017 12:41

Russian Railways to sell stake in TGK-14 in 2018, expects responses from buyers by Dec

BARNAUL. Nov 17 (Interfax) - Russian Railways (RZD) plans to sell its stake in generating company TGK-14 in 2018 and is waiting for offers from potential buyers, TGK-14's press service told Interfax.

"According to the approved plan for selling RZD's noncore assets, the deal to sell the shares in TGK-14 is supposed to be completed in the course of 2018," a spokesman for the power company said, adding that "TGK-14 shareholders are considering the possibility of selling their shares together."

RZD has sent proposals to sell the stake to major Russian energy groups and foreign companies.

"We expect responses to the proposal from interested investors at the end of November. Based on the results of the requests, a pool of participants will be formed and a tender will be held in accordance with the requirements of Russian legislation and RZD's internal corporate rules," the press service said.

The main requirement for the future owner of TGK-14 is that they must "fully meet" obligations to ensure reliable and uninterrupted heat supply. The investor will also have to continue implementing the "company's strategic projects to ensure energy security" in Trans-Baikal Territory and Buryatia.

A TGK-14 spokesman told Interfax that RZD was putting together a proposal to sell its 39.8% stake in the power company. He said the sale was "related to antimonopoly regulation."

"The main complaint against RZD is the combination of types of activity. [Power generation] is a noncore activity, after all," he said. RZD is determining the "criteria for assessing buyers" of the stake in the power company and is "looking for a reliable and strong" company in the industry, he said.