RusHydro, MRSK, FSK Fall on Report Russia May Ban Stake Sale
OAO RusHydro, Russia’s largest power producer, Federal Grid Co. and OAO MRSK Holding fell after Interfax news agency reported that the state may not sell stakes in the companies.
RusHydro dropped 8.4 percent to 77.31 kopeks by the close in Moscow. MRSK fell 9.7 percent to 1.852 rubles, the biggest decliner on the Micex today. Federal Grid, the country’s high- voltage power transmission monopoly, also known as FSK, lost 9.2 percent to 20.48 kopeks.
Russia added OAO Rosneft, RusHydro, Federal Grid and MRSK, the managing company for interregional power distributors, to its list of strategic assets, which may preclude the government from privatizing them, Interfax reported, citing a decree by President Vladimir Putin.
“The news is negative for all the stocks affected,” Alfa Bank analysts led by Alexander Kornilov said in an e-mailed note today. “This effectively means that under Russian law the privatization of any portions of these stakes is possible only after a special presidential decree.”
The government owned 60.38 percent of RusHydro as of March 31, according to the company’s website.
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