Eye for shares in Russian energy
By Richard Fu |
December 3, 2010, Friday
|
Print Edition
Print Edition
CHINA Yangtze Power Co said it will invest US$168 million in Russian utility EuroSibEnergo's planned Hong Kong initial public offering, and they also agreed to form a joint venture for power projects in Russia.
EuroSibEnergo, controlled by Russian billionaire Oleg Deripaska, recently delayed its planned US$1.5 billion IPO in Hong Kong until the start of next year. It was originally slated for the end of this year.
As a cornerstone investor, China Yangtze said it will buy the shares at the IPO price, and the shares will be subject to a lock-up period of six months. The investment in the IPO requires Chinese government approval.
The two firms will also form an equally owned joint venture to develop power projects in Siberia and Russia's Far East, where hydropower resources are rich but largely untapped, the Chinese firm said in a filing to the Shanghai Stock Exchange yesterday.
Some of the generated power will be exported to China, according to China Yangtze, which operates the nation's largest hydropower project, the Three Gorges Dam.
''China Yangzte could take a share of Russia's mass hydropower market by partnering EuroSibEnergo,'' CITIC Securities analysts Wu Fei and Yang Zhishan wrote. ''This could ease market concern over the company's growth which mainly relied on asset injection from its parent in the past.''
EuroSibEnergo, controlled by Russian billionaire Oleg Deripaska, recently delayed its planned US$1.5 billion IPO in Hong Kong until the start of next year. It was originally slated for the end of this year.
As a cornerstone investor, China Yangtze said it will buy the shares at the IPO price, and the shares will be subject to a lock-up period of six months. The investment in the IPO requires Chinese government approval.
The two firms will also form an equally owned joint venture to develop power projects in Siberia and Russia's Far East, where hydropower resources are rich but largely untapped, the Chinese firm said in a filing to the Shanghai Stock Exchange yesterday.
Some of the generated power will be exported to China, according to China Yangtze, which operates the nation's largest hydropower project, the Three Gorges Dam.
''China Yangzte could take a share of Russia's mass hydropower market by partnering EuroSibEnergo,'' CITIC Securities analysts Wu Fei and Yang Zhishan wrote. ''This could ease market concern over the company's growth which mainly relied on asset injection from its parent in the past.''
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