Finnish power concern Fortum, which has not so far got any generation assets in the course of RAO UES of Russia reform, is interested in TGC-2, TGC-10 and WGC-1, a source close to the Russian power holding company has told Interfax. "Fortum is interested in TGC-2 and TGC-10," said the source. Decision on Fortum's participation in the purchase of WGC-1 shares will be taken depending on gas supply arrangements that will be made with gas companies. "The possibilities of participation in the purchase of WGC-1 shares will depend on the gas [supply] situation," said the source. "There has been no confirmation from Fortum as to whether they are definitely going to take part in the purchase of any of these companies," he added. Moreover, there has been no final decision yet on the sale mechanism for WGC-1 shares, i.e. whether they will be sold to the strategic investor or by open subscription, said the agency's interlocutor. A RAO UES official has in his turn reported that Fortum has its eye on TGC-7 too. "They are trying for size every sweet spot remaining in the generation," he said. WGC-1 is currently negotiating gas supply contracts, a WGC official has told Interfax. All six of WGC-1 SRPPs are gas-fuelled (with fuel oil being a back-up fuel). Only two of them, Kashira and Verkhny Tagil SRPPs, are capable on running both on gas and coal. WGC-1 is also holding talks on signing long-term (25 year) coal supply contracts. Placement of TGC-2 shares is scheduled for March. "But its term may be postponed till January," a source told Interfax. TGC-10 will float its shares in March as planned. TGC-10 is also interesting for Germany's E.ON, which has set up E.ON STS-Energy joint venture with its Russian partner, Modern Technological Systems (STS). The JV Board of Directors is headed by Artyom Bikov, former General Director of Urals Power Management Company that used to manage Tyumenenergo and Kurganenergo. Artyom Bikov and his partners consolidated a major parcel of shares of Kurganenergo several years ago. However E.ON has already netted one generation company, namely: WGC-4. The German concern was declared the successful bidder for the state-owned equity stake in WGC-4, and it is also most likely to acquire the WGC's additional issue. TGC-2 currently costs less than the other TGCs in terms of kW of installed capacity, Ekaterina Tripoten, an analyst of Sovlink investment company, has told Interfax. "TGC-2 power plants are situated in the central region characterized by a high power demand", she added. "As for TGC-10, it may be of special interest for investors, since there are a lot of major consumers with a growth potential, first of all oil producers, in the Tyumen Region where the company's assets are located," said Ekaterina Tripoten. Another geographical advantage of TGC-10 is its proximity to major gas-producing centers, which eases the problem of gas supplies. TGC-10 will offer investors up to 500 million additional shares with a par value of RUR 1.66, totaling 115.63% and 53.62% of its registered capital before and after the placement correspondingly. In fact, this will be just the number of shares necessary to raise RUR 32 billion required for financing of the investment program. The state-owned interest in TGC-10 will be sold concurrently with the additional shares. Details of TGC-2 additional share issue have not been approved by its Board of Directors yet. The Company intends to fetch RUR 9 billion by placing its additional shares. It is only a blocking stake in TGC-1 that Fortum currently owns in Russia. |
