Russian oil and metals magnate Viktor Vekselberg has paid about $400 million to bring his stake in power generator TGC-5 to 40 per cent and offered to buy out remaining shareholders, his firm said today.
Territorial Generating Company (TGC) number 5 is being spun off from the former power monopoly RAO UES, together with other power distributors, as part of broader industry reforms to introduce competition.
Vekselberg's purchase of shares brings him closer to control of the firm and sets the pace for a slew of future sales expected in Russia's power sector reforms.
TGC-5 said in a regulatory statement today its board had accepted an offer from Vekselberg's vehicle, ZAO KES, to buy 79 per cent of the new issue after existing shareholders exercised their pre-emptive rights for only 21 per cent of the new issue.
The new share issue amounted to around $450 million, which means Vekselberg paid around $400 million plus some money to exercise his pre-emptive right, awarded because KES was already a minority shareholder in TGC-5 before the issue.