The additional share issue by WGC-3 is the first initial public offering (IPO) in the history of Russian electricity sector in favor of a private strategic investor.
"After all the bids were studied, Norilsk Nickel was chosen as the strategic investor who will buy all the newly issued shares in WGC-3," Alexander Chikunov said.
WGC-3 has issued 18 billion ordinary shares at 4.54 rubles ($0.17) per share, Chikunov said. The press service of UES said the entire additional share issue totaled 81.72 bln rubles (about $3 bln). Bids from investors were accepted until March 9.
Norilsk Nickel, the world's leading producer of nickel and palladium, has been selected out of eight major Russian and foreign companies, which also included Italy's Enel, Russia's Gazenergoprom, Finland's Fortum, and Russia's Mechel Group.
Following the IPO, UES will reduce its stake in WGC-3 from 59.72% to 37.08%. WGC-3 plans to invest the money in new power generating units on Russian territory.
WGC-3 has fixed capital of 29,487,999,252 rubles (over $1 bln), which consists of ordinary shares at 1 ruble ($0.04) par value.
Norilsk Nickel is one of the largest producers of platinum and one of the top ten producers of copper in the world, whose revenues reached $4.2 bln in the first half of 2006. The company is rated Baa2 by Moody's Investors Service and BBB- by Standard & Poor's and Fitch Ratings.
