E4 buys into TGK-11

摘要

The E4 Group controlled by Mikhail Abyzov, a former senior executive of sector holding company RAO UES, appears set to take control of the southwestern Siberian territorial generation company TGK-11, after submitting the highest bid in an April 18 auction for the implied government stake. According to reports, E4 Group outbid a rival offer from the Mechel Steel Group for the state's 28.9% pre-money stake at a price slightly above that at market close of $0.00128 per share on the MICEX and $0.00126/share on the RTS. Analysts fully expect E4 to participate in the new share issue, when a further 26.1% post-money stake will be available. Given that investors which have bought the government stake have in the previous genco privatizations generally also bought most of the new shares, it is expected that E4 will end up with close to a controlling stake. E4 could subsequently buy a 26% stake held by SUEK, Russia's largest coal producer, which has previously announced it intends to sell its stake (EIEE 131/20).