Russian power company expected to float

5 September 2007

OGK-2, the Russian power company, is planning to float its global depository receipts (GDR) on the London Stock Exchange.

It has retained Deutsche Bank, Troika Dialog, and UBS to organise the offering.

There are also plans for the firm to offer ordinary shares in Russia and there is a possibility that a system of ordinary bonds that could be exchanged into GDRs will be part of the initial deal.

RAO UES, the Russian oil giant, is looking to sell its generating assets to raise funds for upgrades and to introduce more competition into the market, according to City AM.

There is a target of $2 billion to be raised, and it is expected that 31 per cent of OGK-2 will go on the market to reach this target.

According to the newspaper, 12 billion new shares will be issued and will be worth a total of about $1.91 billion.

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