RusHydro Retreats for Second Day on Smaller Payment Report
OAO RusHydro, Russia’s largest hydropower company, fell a second day on a Kommersant report it may receive a smaller-than-expected payment for selling a stake to state holding company OAO Rosneftegaz.
RusHydro declined 2.5 percent to 80.81 kopeks by the close in Moscow. The shares have slumped 17 percent this year.
Russia’s presidential energy and fuel commission may recommend RusHydro pay state-controlled power generator and exporter OAO Inter RAO UES 31 billion rubles ($949 million) and turn over Inter RAO’s shares after Rosneftegaz buys an 85 million ruble-stake in RusHydro, Kommersant reported today, citing people familiar with the discussions. An earlier plan had Rosneftegaz paying RusHydro the 85 million rubles, after which the company would have issued additional shares to pay Inter RAO, Kommersant reported on June 19.
“This deal does not appear favorable for RusHydro because the company would receive only 54 billion rubles in cash instead of the initially planned 85 billion rubles, which will not cover the company’s capital expenditure needs,” Alfa Bank analysts led by Alexander Kornilov said in an e-mailed research note.
Inter RAO dropped 0.4 percent to 2.77 kopeks.
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