PRESS: Rosseti plans to issue shares, cut govt stake to 75%

MOSCOW, Oct 2 (PRIME) -- Russian power grid holding Rosseti plans to issue shares to dilute the government stake to 75% plus one share from 88.04% until 2020, business daily Kommersant reported on Tuesday, citing market sources.

According to Aton analyst Alexander Kornilov, cited by the newspaper, Rosseti will have to issue a stake accounting for 18% of the current amount of common shares, which would amount to 26 billion rubles at the current share price. In this case, free float of the company will grow to 25% from 11.1% and it can be listed by the MSCI Russia.

The idea has not been discussed with the government. State industrial corporation Rostec is still negotiating the purchase of up to 30% in Rosseti via an 85.2 billion ruble share issue.

(65.5745 rubles – U.S. $1)

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