Gaz De France Eyes Siberian Power Utility

Gaz de France is seeking to acquire RAO UES’s TGK-10 utility, reported Thomson Financial, quoting Russian daily Vedomosti.

RAO UES is required to reduce its stake in the Siberian company to 11% from the current 89% early next year. It will go about doing this by selling a 59% stake and carrying out a capital increase equal to 137% of TGK-10′s share capital value, Thomson Financial said.

Gaz de France would have to pay an estimated $3.59 billion to acquire the government’s 59% stake and the additional shares that originated due to the capital increase. TGK-10 generates close to 3,000MW of power from its main units at Chelyabinsk, Tobolisk and Tryumen.