PRESS: Govt mulling letting Rosseti CEO manage FGC UES

MOSCOW, Feb 25 (PRIME) -- The Russian government is discussing granting CEO of power grid holding Rosseti Pavel Livinsky the authority of a united executive body of Federal Grid Company of Unified Energy Systems (FGC UES), business daily Kommersant reported on Tuesday, citing sources.

“It was preliminarily decided that the authority of the united executive body of FGC UES will be given to the head of Rosseti, which means that Pavel Livinsky will become the CEO of the two companies. This can be followed by the establishment of a treasury based on the parent structure (Rosseti) and withdrawal of the government from direct management of FGC UES via orders,” the paper said.

President Vladimir Putin in January agreed with Livinsky’s proposal to allow the company to consolidate FGC UES on the basis of Rosseti. Consolidation can be announced in a month or two.

Rosseti can issue additional shares, converting the stakes of FGC UES’s minority owners into stakes in the parent company, or it can switch to a united Rosseti–FGC UES share through forced buyout from minority owners of FGC UES and delisting.

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