Russia to sell stakes in RusHydro

The Russian government has announced it plans to reduce its 58 per cent share in RusHydro, the country’s biggest hydropower company and the second biggest in the world in terms of installed capacity.
The share sell-off will take place in two stages. In the first round, the government will sell 7.9 per cent of its share, and this is expected to take place relatively quickly. The government, however, will retain a controlling stake.
With regard to the second round, the government was vague on the size and timing of it, although it is likely to happen within the next 3-4 years.
Although the size of this share sell-off was not confirmed it is understood that once it takes place the government will no longer hold a controlling stake, but will still retain a blocking/veto share.
The government is keen to attract both domestic and foreign companies.
In its statement it said that it would be interested in attracting Chinese companies through a share exchange and for them to participate in RusHydro projects.
There could also be a possible share swap with UC Rusal, the world’s largest aluminum producer. Rusal’s owner, Oleg Deripaska, also owns Eurosibenergo, a genco that serves the Siberian region. In any potential deal, the government would take a stake in Eurosibenergo, in exchange for shares in RusHydro.
In a separate announcement Andrei Likhachyov, the chairman of Eurosibenergo said it may revive its initial public offering (IPO) plans this autumn.
Eurosibenergo had planned to hold an IPO in Hong Kong in December last year but it fell through when its strategic investor, Yangtze Power Company, China's largest listed hydropower corporation, failed to get permission from Beijing to participate in the deal and establish a joint venture for the construction of power generation facilities in Siberia.
For more business news, click here

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...