MOSCOW, August 13 (RIA Novosti) – A subsidiary of Russian energy giant Gazprom has won a tender to buy the Moscow United Energy Company (MOEK), according to auction results announced Tuesday, in a bid apparently intended to diversify Gazprom’s business.
Gazprom Energoholding was announced the auction winner after offering to buy the Moscow government’s 89.97 percent stake in the power utility at the starting price of 98.6 billion rubles ($2.9 billion). The other bidder in the auction was Sberenergodevelopment, a subsidiary of Russia’s largest state-controlled bank Sberbank.
Moscow Government Property Department deputy head Irina Khrabrova said the Moscow authorities were satisfied with the price of the deal. “Undoubtedly, yes,” she told reporters.
The Moscow United Energy Company provides heating and hot water supplies to Moscow and surrounding towns. The company is the largest buyer of thermal power from Mosenergo, a utility controlled by Gazprom.
Control of both companies is expected to allow Gazprom to distribute more efficiently heating power generation between MOEK and Mosenergo.
In May 2013, Russia’s anti-trust watchdog allowed Gazprom Energoholding to acquire over 75 percent of MOEK.
The deal is expected to be closed in five weeks, a Moscow government official said.
Gazprom Energoholding is Russia’s largest owner of generating assets with a total installed capacity of 37 GW, accounting for 17 percent of the country’s electric power capacity.
