E.ON has been selected as the best bidder for the 47% stake in OGK-4 offered by Russian state-owned company RAO UES.
<p>OGK-4 is one of six operators of large-scale generating facilities currently being privatized by RAO UES. The board of OGK-4 has set the purchase price for the upcoming capital increase of about 23%. This purchase price is equivalent to the price E.ON offered for the OGK-4 shares. <br /><br />E.ON also intents to submit a binding offer for this capital increase in order to acquire a roughly 70% stake in OGK-4. E.ON would then pay an overall purchase price of E4.1 billion. Under Russian securities law, after officially acquiring the stake E.ON must make a public tender offer to OGK-4's minority shareholders.<br /><br />E.ON CEO Wulf Bernotat said: The acquisition of OGK-4 would be an another important step into the Russia electricity market, which offers enormous growth potential due to the sharp increase in industrial demand and the need for substantial investments.</p>