Finland’s Fortum offers share buy-out to Russia’s OAO Lenenergo
Finnish utility company Fortum has made an offer to buy out shareholders in Russian electricity firm OAO Lenenergo after its stake in the company rose to 32.8% as a result of Lenenergo’s decision to redeem some of its own shares.
Fortum said in a statement it expects to buy approximately 25 million common shares at an offer price of RUR 30 (£0.59) per share during a 30-day offer period.
Shares in Fortum were trading up 0.48% at EUR 14.77 at midday Friday GMT.
Fortum has been rapidly expanding its electricity operations in the Russian and Baltic State markets. Fortum also has a holding in Russia’s new north-western power generation company TGC-1. Unified Energy System, Russia’s monopolistic electricity generator, which generates 69.4% (635.8 billion KWh), formed TGC-1 with three regional utility companies; operations are expected to start in October.
Fortum reported earlier this month that its stake in TGC-1 would rise to more than 20% as a result of its increased stake in OAO Lenenergo.
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