* InterRao trades electricity in Nordic States
* Company eyes both generation, distribution assets - source
* No share offering over next 2-3 years
By Sven Nordenstam and Anastasia Lyrchikova
STOCKHOLM/MOSCOW, Sept 19 State-controlled
Russian power group InterRao is on the lookout to
acquire assets in the Nordic States as it seeks to expand into a
key export market, a board member told Reuters.
InterRao is a monopoly electricity exporter out of Russia,
trading at the Scandinavian Nord Pool energy market, in the
Baltic States and in Turkey via its units RAO Nordic, InterRao
Lietuva and TGR Enerji.
Foreign generation accounts for around 18 percent of
InterRao's total capacity of 33.5 gigawatt and is located in
Armenia, Georgia, Kazakhstan, Lithuania, Moldavia and Turkey.
"We are now seriously studying expansion possibilities in
Scandinavia... Firstly in Finland. The second are opportunities
for our company in Sweden," Ilnar Mirsiyapov, member of InterRao
board and head of strategy, said.
He declined to give details but a source with the company
said InterRao was looking at both generation and distribution
Mirsiyapov spoke to Reuters in Russian during a business
trip to Sweden. His comments were cleared for publication on
Finland is a key export market for InterRao, and used to
account for around 40 percent of its foreign sales. But supplies
to Finland dropped to around 20 percent of InterRao's total last
year to 3.8 billion kilowatt/hour as cheaper hydroelectric power
took market share.
Mirsiyapov said he hoped total export volumes would remain
at 2012 levels of 18.4 billion kWh this year or slightly higher.
NO SHARE OFFERING SOON
InterRao, which was planning a secondary share offering
(SPO) of between $1.5 billion and $2 billion to fund its
internal and international expansion, has postponed a deal for
at least 2-3 years, he said.
"An SPO is needed when the company is seeking funds for
further development... As of now, we don't have approved
investment projects which require such money," Mirsiyapov said.
He added that the company was still considering London for SPO.
InterRao, Russia's third largest power firm by capacity, was
planning to place shares between 2012 and 2014, also to fund its
It planned to increase foreign generation capacity to 10
gigawatt by 2015 but scrapped the plans a year ago to focus on
the markets it is already in.
InterRao is majority-controlled by the state, with 13
percent owned by Norilsk Nickel, almost 14 percent
belonging to InterRao's own unit while 18 percent is held by
minorities, including the free float.
(Writing by Katya Golubkova; editing by Douglas Busvine and