Daily analyst comments

Inter RAO UES has set its sights on a controlling interest in TGK-11, which could be gained by exchanging its assets for a blocking stake in TGK-11 which is currently held by SUEC, Interfax reported with reference to a source close to Inter RAO UES shareholders. The source would not elaborate on exactly what assets were at stake, nor did it disclose the deadline for completion of the deal.

Earlier, Rosneft, which owns about 6.0% of TGK-11, stated that Inter RAO had intended to swap the stake for its own shares. In so doing Inter RAO UES would amass around 32.5% in TGK-11. To gain control over the genco, Inter RAO would also need to buy out the 27.5% of TGK-11 shares now on FGC books. Consolidation of over 30% in TGK-11 would involve the obligation for Inter RAO to make a buyout offer to TGK-11 minority shareholders. We believe that the statements made will trigger a neutral reaction from the market until information is released about the expected deadline for the deal’s completion and its price.