Russia's UES says Czech CEZ eyes TGK-4 deal

27.04.2007 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

MOSCOW, April 27 (Reuters) - Russia's former power monopoly RAO UES said on Friday Czech power firm CEZ had expressed interest in becoming...

...a strategic partner of power generation firm TGK-4 .

TKG-4, or territorial generation company, is being spun off from RAO UES as part of a broader power sector reform.

It has most of its power generation assets in central Russia and is planning to float new stock worth at least 13 billion roubles ($505.1 million) around November to raise new money for modernisation from strategic and portfolio investors.

UES said CEZ was primarily interested in teaming up with TGK-4 in building up to 420 megawatt of new power generation facilities. It did not say whether CEZ was planning to buy into the firm's charter capital.

Market players have also said CEZ was rumoured to be seeking a stake in OGK-5 , a bigger power generation company, which will sell a stake of 25 percent to investors in June.

Industry sources have said Germany's E.ON , Italy's Eni and big Russian firms may also bid for OGK-5.

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