Russian Railways plans to sell 39.8% in power maker TGC-14

MOSCOW, Nov 10 (PRIME) -- Russian Railways plans to sell its entire 39.8% interest in power producer Territorial Generating Company-14 (TGC-14) and has hired VTB Capital as the financial consultant, a Russian Railways official told reporters on Friday.

Recommendations by VTB Capital are expected until November 20, the official of Russian Railways said.

He said that the company acquired the TGC-14 to supply power to its eastern railways and it served as a reserve facility, but energy partners of Russian Railways cover the needs fully. “Furthermore, the forecasted volumes connected with further development of the eastern area are met by investment programs of these companies,” he said.

A source with knowledge of the deal said that Russian Railways is considering selling its stake together with a 50% interest of private pension fund Blagosostoyaniye.

“Various options are being considered, including of a joint sale of Russian Railways’ shares with Blagosostoyaniye’s stake. Jointly it amounts to about 90%,” the source said.

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