OAO RusHydro jumped the most in more than two months as Russian President Vladimir Putin approved a cash injection of as much as 50 billion rubles ($1.6 billion) for the country’s largest renewable energy producer.
RusHydro climbed 3.8 percent to 75.72 kopeks by the close in Moscow, the biggest advance since Sept. 14. About 1.29 billion shares changed hands, equivalent to 2.1 times of the three-month daily average, according to data compiled by Bloomberg.
Putin signed a decree approving a government proposal to provide RusHydro with as much as 50 billion rubles from the budget this year and allowing the company to issue additional shares to increase its capital, according to an e-mailed copy of the document. Putin delayed electricity tariff increases before the presidential vote on March 4, hampering Rushydro’s efforts to fund a four-year, $12.3 billion investment plan.
“Investors must be happy that the situation has been resolved and that Putin had supported the government’s proposal,” Ilya Koupreyev, an analyst at Aton Capital in Moscow, said by phone.
The government’s stake in RusHydro should not drop below 60.5 percent, according to the decree.
To contact the reporter on this story: Ksenia Galouchko in Moscow at firstname.lastname@example.org
To contact the editor responsible for this story: Gavin Serkin at email@example.com