Energy Ministry suggests privatizing grid holding subsidiary in Q1 2013
MOSCOW. July 13 (Interfax) - The Russian Energy Ministry proposes to privatize an Inter-District Grid Company Holding (IDGC Holding) subsidiary in Q1 2013, Energy Minister Alexander Novak told reporters.
"We've proposed a pilot project to privatize an IDGC Holding subsidiary in Q1 2013. Just one for now," he said, without specifying which one.
"This will be a supplementary share issue, which will attract strategic investors. We'll suggest that the funds from the share issue remain at the subsidiary's disposal so they can be put towards the investment program and modernization," he said.
The ministry is looking for a consultancy that will value the subsidiaries. "We'd like this to be not the best and not the worst, but somewhere in the middle," he said.
Novak said the privatization issue was discussed at a meeting with Deputy Prime Minister Arkady Dvorkovich last Friday. In his opinion, privatization should be preceded by efforts to improve the company's efficiency, including the elimination of cross subsidies.
