PRESS: Russia’s Inter RAO mulls buying Enel Russia – sources

MOSCOW, Nov 10 (PRIME) -- Russian power holding Inter RAO is considering buying power producer Enel Russia, business daily Vedomosti reported Thursday citing sources.

Inter RAO’s delegation plans to visit Enel Russia’s facilities for appraisal in the near future, the sources said. The deal can be signed already by mid-December, one of the sources said.

Inter RAO has necessary funds to finance the purchase, as in May the holding sold 40% in power utility Irkutskenergo to EuroSibEnergo for 70 billion rubles and had 101.1 billion rubles on its accounts as of late June.

Under control of Inter RAO Enel Russia’s power facilities may receive a 10 discount on gas from oil major Rosneft and on coal from the Ekibastuz field, Renaissance Capital analyst Vladimir Sklyar said. Enel Russia could thus save up to 3 billion rubles on fuel, while the combined effect from Enel Russia’s integration into Inter RAO through optimization of expenditures may amount to up to 9 billion rubles, the analyst said.

Italy’s Enel Investment Holding B.V. holds 56.43% in Enel Russia.

(63.8928 rubles – U.S. $1)

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