Russia's MRSK eyes share issue worth $1.2 billion: source

MOSCOW Mon Oct 15, 2012 8:26am EDT

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MOSCOW (Reuters) - Russian state grid holding company MRSK (MRKH.MM) MRKHxq.L plans an additional share issue worth almost $1.2 billion to fund its investment programme, a source close to the company board of directors told Reuters on Monday.

The source said the company plans to place additional 16.9 billion shares - around 34 percent of current market capitalization - priced at 2.16 roubles each, almost on a par with Monday's trading session opening.

The source added that the government-owned MRSK plans that the state would buy out 20 billion roubles worth of the new shares.

As of 1015 GMT, MRSK's Moscow-traded shares fell 3.7 percent to 2.07 rouble, with the decline triggered by the news. (Reporting by Nastya Lyrchikova; writing by Vladimir Soldatkin)