Support The Moscow Times!

Bashkirenergo Reorganizing

InterRAO will pay Sistema up to 14 billion rubles ($464 million) for a 40 percent stake in Bashkirenergo as part of a deal to split the regional utility's assets, the firms said Saturday.

Bashkirenergo plans to demerge its electricity grid and power generation. The split will see InterRAO, which currently owns a 25.08 percent voting stake in Bashkirenergo, obtain control of the utility's 4.2 gigawatts of power-generating assets. Sistema, which owns a 50.53 percent Bashkirenergo stake, will control Bashkirenergo's power distribution grid.

The deal is expected to close in the fourth quarter of 2012 or first quarter of 2013. Bashkirenergo's and Sistema's shareholders will vote on the proposed reorganization next month.

(Reuters)

Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.