Alexa

Finnish utility Fortum to acquire majority stake in Russian TGC-10

Finnish utility Fortum to acquire majority stake in Russian TGC-10

Nordic utility Fortum Corp. is acquiring a majority stake of up to 76 percent in the Russian power producer TGC-10, with an eye on full ownership in the long term, the company said Friday.
"The acquisition is in line with Fortum's growth strategy and will make Fortum a significant player in one of the world's largest energy markets with high demand growth," the energy group said. "If Fortum reaches a 100 percent holding in TGC-10, the total value of the transaction will be around euro2.7 billion (US$4.1 billion).
Territory Generation Co. No. 10, is a regional utility serving oil-producing areas in western Siberia.
Fortum said it will receive 63 percent to 76 percent of TGC-10's shares and voting rights, following a share auction on Feb. 28. The company said it will also "make a mandatory offer to purchase the remaining 24-37 percent of the shares held by minority shareholders."
Fortum, based in Espoo near the Finnish capital, is the second largest power company in the Nordic region. It employs 8,300 people and is 51 percent owned by the Finnish government.
___
On the Net:
http://www.fortum.com