The Moscow Times
RusHydro, one of Russia’s largest power generating companies, is set to offer a majority stake in its far-eastern subsidiary to Asian investors, a news report said Friday.
The asset in question is RAO Energy Systems of the East, in which RusHydro has an 84 percent stake. The company, which unites several hydropower generation facilities in the Far East, is struggling with a heavy debt burden, while government control over electricity tariffs stunts revenue and investment.
“We are looking into the possibility of selling up to a majority stake [in RAO Energy Systems of the East] to a strategic investor from Asia,” George Rizhinashvili, deputy head of the board of RusHydro, was quoted by the Kommersant newspaper as saying. RusHydro would consolidate a 100 percent stake in RAO Energy Systems of the East before the sale, Rizhinashvili said, giving a timeline of 3-5 years for the deal.
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