Kubanenergo Heads for 4-Month High on MRSK Offer: Moscow Mover
OAO Kubanenergo headed for a four- month high on optimism that OAO MRSK Holding will offer a premium to buy shares from minority investors in the Krasnodar- based Russian electricity distributor.
Kubanenergo rose as much as 7.5 percent before trading up 4.9 percent at 122 rubles by 2:23 p.m. in Moscow, the highest price since May 10 on a closing basis. MRSK Holding added 1.5 percent to 2.37 rubles. The Micex Index (INDEXCF) fell 0.2 percent.
MRSK, Russia’s holding company for interregional power distributors, has been increasing its stake in Kubanenergo, reaching 63 percent last week, according to a Sept. 21 statement. The company plans to make an offer to Kubanenergo’s minority shareholders after receiving approval from the Economy Ministry, Interfax reported yesterday, citing Chief Financial Officer Aleksey Demidov.
Alfa Bank expects MRSK to offer shareholders 157.8 rubles a share, or $5.06, according to an e-mailed report.
“We view the news as positive for Kubanenergo shares and recommend investors participate in the buyback once it is announced,” Alfa analysts led by Alexander Kornilov wrote in the report. Given “huge” debt of 6.6 billion rubles, the premium to Kubanenergo shares’ market price creates a “very attractive exit opportunity.”
The deal may be closed by the end of the year, Troika Dialog said in an e-mailed note today.
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