The additional share issue by WGC-3 is the first initial public offering (IPO) in the history of the Russian electricity sector in favor of a private strategic investor. The move is part of the UES reorganization scheme.
WGC-3 is expected to channel the IPO proceeds into investment projects to build new generating capacities, the press office said.
As reported earlier, Norilsk Nickel could consolidate its stake in WGC-3 to 46.5% of the company's ordinary stock, after the metals giant purchases the power generator's additional share issue and consolidates it with earlier purchased shares.
Following the IPO, UES [RTS: EESR] will reduce its stake in WGC-3 from 59.72% to 37.08%.
The WGC-3 board of directors earlier approved the placement of the company's newly issued shares at 4.54 rubles ($0.17) per share.
Norilsk Nickel is one of the largest producers of platinum and one of the top 10 producers of copper in the world, whose revenues reached $4.2 billion in the first half of 2006. The company is rated Baa2 by Moody's Investors Service and BBB- by Standard & Poor's and Fitch Ratings.
