Territorial'naya generiruyushchaya kompaniya No 9 OAO Wins Tender for Acquisition of Stake in Territorial'naya generiruyushchaya kompaniya No 5 OAO's Privatization-Interfax


Wednesday, 26 Jun 2013 06:52am EDT 

Interfax reported that the Russian government has approved the results of privatization of a blocking stake in Territorial'naya generiruyushchaya kompaniya No 5 OAO (TGK-5), which is part of Mr. Viktor Vekselberg's IES Holding. Russian Prime Minister Mr. Dmitry Medvedev signed the order confirming these results on June 25. The shares will be transferred to the buyer after the funds arrive at the Federal Treasury's account, the document said. Russia is selling 308.696 billion shares in TGK-5, or 25.1% of its capital. VTB Capital, the privatization agent, announced the winner on April 12. Another company controlled by IES Holding, Territorial'naya generiruyushchaya kompaniya No 9 OAO (TGK-9) offered RUB 1.08 billion for the asset. Altogether, there were six applications to participate in the tender process. Informational materials were originally forthcoming from seven strategic investors and over 30 institutional investors and funds. However, only TGK-9 provided qualification documents. The price assumes a 6% premium to the price of TGK-5 shares on the Moscow Exchange as of April 11. The proceeds from the sale closely matched the expectations of the Russian authorities. At the end of February, the Economic Development Ministry estimated potential earnings at RUB 1.1 billion. 

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