OAO Lenenergo jumped to a four-month high, on concern OAO MRSK Holding, the nation’s largest electricity distribution company, may overpay for a stake in the power transmission operator.
Lenenergo surged as much as 7.7 percent before closing up 1.6 percent at 7.363 rubles, the highest level since May 21. MRSK Holding sank as much as 2.5 percent before closing down 1.7 percent at 2.080 rubles, the lowest level since Sept. 7.
MRSK Holding has proposed swapping a 49 percent stake in Kurganenergo for a stake in Lenenergo, the company said in a statement. For the transaction, Lenenergo shares will be valued at 13.9 rubles a share, it said, a 92 percent premium to yesterday’s closing price.
“The fact that MRSK Holding once again agrees with the extremely high valuation of the asset only aggravates the negative market sentiment,” Alfa Bank analysts led by Alexander Kornilov, said in an e-mailed note.
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