6 Aug 2009 10:12

En+ still mulling EuroSibenergo IPO

MOSCOW. Aug 6 (Interfax) - En+ Group, which is the energy division of Oleg Deripaska's Basic Element (BasEl) holding, is still not ruling out an IPO by EuroSibenergo, the company which is consolidating the holding's power sector assets.

Vladislav Solovyev, the general director of En+, told Interfax that an IPO 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,

En+ will finish consolidating its power sector assets under the EuroSibenergo umbrella in the next six to eight weeks, the En+ press office told Interfax.

En+ estimates the consolidated assets will have a 9% share of the Russian electricity market.

EuroSibenergo currently lists 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%.

EuroSibenergo still has to consolidate the controlling stake in Krasnoyarsk Hydro , and that could take up to two months.

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.

"We're close to accomplishing our strategic goal of creating a diversified energy company and one of the leaders in its field in Russia in terms of efficiency, operating to international corporate governance standards," Solovyev has said in the past.

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.