EMAlliance retains IPO plans, despite stake-purchase talks with Inter RAO
MOSCOW. May 25 (Interfax) - JSC EMAlliance still plans to go ahead with an IPO even though it is negotiating with Inter RAO UES over the purchase of a controlling stake, a source at EMAlliance told Interfax.
"The processes are parallel and not directly linked. The possibility of an IPO depends on the shape of the market, and no specific decision on timing has yet been made," this source said.
The parties have reached tentative agreement on setting up "a multi-profile, full-cycle production-engineering holding" to increase competitiveness on the Russian and world market for power machinery and engineering.
It would be done by Inter RAO buying a stock interest "sufficient to carrying out the functions of strategic management and basic decisions on the company's functioning and development," the source said. The deal is expected to be effected by additionally issued Inter RAO shares being used to pay for the EMAlliance stake. Operational company management would remain with the current management team.
The parties plan to agree "the deal's timing and pricing parameters" by this autumn, the source said.
The company's development in the event this deal transpires would be done both with the transfer to Russia of cutting-edge technology and the possible acquisition of assets "with leading-edge solutions and up-to-date production possibilities," the source said. The holding will be oriented toward investment projects in the creation, modernization, and reconstruction of generating assets both in Russia and abroad.