MOSCOW, May 28 (RIA Novosti) - Complex Energy Systems, a Russian private energy company, has paid 1.6 billion rubles ($450 million) for a new share issue of heat and power company TGC-5, electricity monopoly Unified Energy System said Monday.
Territorial generating company TGC-5, controlled by UES, unites 11 power and thermal plants in four Russian regions between Kirov and the Urals.
UES executive Alexander Chikunov said the stake in TGC-5 was purchased at 3.52 rubles ($0.136) per share or "$501 per kilowatt of the company's installed capacity."
"The value of funds raised during the new share issue amounted to more than 11.6 billion rubles ($450 million). The newly issued shares of TGC-5 were placed according to technology aimed at selling the stock either only among strategic investors or both among strategic and financial investors," the UES executive said.
Russia's power sector has undergone radical changes in recent years aimed at increasing the efficiency of power plants and developing the industry by attracting investment. During the restructuring process, specialized structures have been created in place of the old vertically integrated companies.
Once reforms are complete, the potentially competitive sectors of the industry - generation, sales and repair companies - will become mainly private and will compete with one another. However, natural monopolies - power transmission and dispatching - will remain state-controlled.
After the purchase of TGC-5's newly issued shares, Complex Energy Systems will control about 40% of the power generating company.
