Finland’s Fortum has withdrawn from Lenenergo by selling its 35.5 percent for $300 million.
Photo: Nikolay Cyiganov
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KES Grabbed a Portion of Fortum’s Share
Finland’s Fortum has withdrawn from Lenenergo by selling its 35.5 percent for $300 million. The buyers are RAO UES of Russia, VTB and I.D.E. Electricity Distribution Investments 1 Ltd. that stands for KES Holding. Fortum views the deal very advantageous, while the analysts are generally astonished by KES arrival in Lenenergo and expect the holding to re-sell this asset in the near term.
Fortum announced Friday it sold 35.5 percent in Lenenergo to three buyers. RAO UES of Russia paid more than $29 million for 3.3 percent in Lenenergo, while the remaining stake went for $260 million to consortium of VTB and KES Holding Investment Fund’s I.D.E. Electricity Distribution Investments 1 Ltd. The deal will be completed by the end of this week. The actual distribution of the stake between VTB and KES hasn’t been disclosed.
Fortum is quite satisfied with the deal, said its spokesman Marina Balabanova. “For us, the priority is investing in generating assets, so we have disposed of the networks,” Balabanova explained. “Moreover, the sale of stocks was very profitable. We have recovered all investments made in the power engineering of Russia – roughly $300 million. Under our estimate, the stocks of energy companies that we currently own in Russia cost $1.4 billion,” she said, declining to comment on Fortum’s possible participation in the acquisition of new stocks of Wholesale Generation Companies (WGCs) and Territorial Generation Companies (TGCs).
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All the Article in Russian as of Aug. 20, 2007
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