Russian govt approves results of TGK-5 privatization
MOSCOW. June 26 (Interfax) - The Russian government has approved the results of privatization of a blocking stake in OJSC TGK-5 , which is part of Viktor Vekselberg's IES Holding.
Russian Prime Minister Dmitry Medvedev signed the order confirming these results on June 25.
The shares will be transferred to the buyer after the funds arrive at the Federal Treasury's account, the document said.
Russia is selling 308.696 billion shares in TGK-5, or 25.1% of its capital. VTB Capital, the privatization agent, announced the winner on April 12. Another company controlled by IES Holding - OJSC TGK-9 - offered 1.08 billion rubles for the asset.
Altogether, there were six applications to participate in the tender process. Informational materials were originally forthcoming from seven strategic investors and over 30 institutional investors and funds. However, only TGK-9 provided qualification documents.
The price assumes a 6% premium to the price of TGK-5 shares on the Moscow Exchange as of April 11.
The proceeds from the sale very closely matched the expectations of the Russian authorities. At the end of February, the Economic Development Ministry estimated potential earnings at 1.1 billion rubles.
TGK-5 has charter capital of 12.303 billion rubles divided into 1.23 trillion ordinary shares, par value 1 kopeck each.
The generating company has combined heat and power plants in Chuvashia and Udmurtia, the Kirov region and the Mari El Republic, with installed capacity of 2,467 megawatts (MW). IES currently controls over 40% of TGK-5's shares, and 5% belongs to the Gazprom group .
Vekselberg said in April that Renova, of which he is the main owner, is willing to invest up to a fifth of the funds it received from selling its stake in TNK-BP in the electricity sector. Renova will get $7 billion of the $28 billion Rosneft paid the Alfa-Access-Renova (AAR) consortium for half of TNK-BP.
Besides TGK-9 and TGK-5, IES Holding also owns strategic stakes in OJSC TGK-6 and OJSC TGK-7 .