MOSCOW, August 17 (RIA Novosti) - Fortum has decided to sell a minority 35.5% share in Lenenergo, an electricity distributor in northwestern Russia, to a consortium of Russia's second-largest bank VTB and electricity monopoly Unified Energy System (UES) for 295 million euros ($395 million).
The Finnish energy concern said in a press release Friday the decision was in line with its strategy for investing primarily in electricity generating assets.
Lenenergo's generating facilities split from the company to form the territorial generating company TGK-1 as part of a reform in the Russian energy sector. Fortum holds some 25% of the shares in TGK-1.
Fortum said the deal with the consortium, which also involved I.D.E. Electricity Distribution Investments 1 Ltd., would yield 230 million euros ($310 million) after taxes in third quarter accounts.
Lenenergo is 56% owned by UES and has a market value of 29.1 billion rubles ($1.1 billion), according to independent valuators.
Fortum is the largest energy company in northern Europe, specializing in electricity production, the extraction and refining of oil, and the maintenance of generating facilities.
