9 Sep 2009 18:17

En+ consolidates power sector assets

MOSCOW. Sept 9 (Interfax) - En+ Group, which is the energy division of Oleg Deripaska's Basic Element (BasEl) holding, has finished consolidating its power sector and engineering assets under the EuroSibenergo umbrella, the company said in a statement.

The last of these assets was a controlling stake in Krasnoyarsk Hydro .

EuroSibenergo previously listed a controlling stake in the Irkutskenergo power utility, VolgaEnergo, EuroSibenergo Engineering, the MAREM+ sales company and a number of coal mining assets on its balance sheet. EuroSibenergo's directly owned stake in Irkutskenergo has increased from 22.78% to 50.19%.

Vladislav Solovyev, the general director of En+, told Interfax earlier that that an IPO by EuroSibenergo was being considered as potentially interesting means of raising capital for the power company's development and its long-term investment program.

"We're not ruling out an IPO in the future, when the markets recover," Solovyev said, adding that the company and its shareholders had not yet reached any decisions regarding an IPO.

EuroSibenergo will have 19,500 megawatts of installed generating capacity - 15,000 megawatts of it hydropower capacity - and 17,570 Gcal/h of heat once the consolidation is complete. It will be generate approximately 80 billion kilowatt-hour of electricity and 30 million Gcal of heat per year.

The consolidated EuroSibenergo will mine more than 10 million tonnes of coal - enough to cover 70% of its needs - per year.

The assets used to be on the balance sheets of various companies run by LLC EuroSibenergo, set up in 2001.

EuroSibenergo was registered as an OJSC in Moscow in September 2008, when it said it would consolidate the power sector assets. Its then general director, Sergei Edmin, who is now in charge of Irkutskenergo, said at the time the company might hold an IPO.