Italian utility Enel is hoping to make a takeover bid for Russia wholesale electricity generator Fifth Power Generation Company, also known as OGK-5, by the end of 2007, Thomson Financial has reported, citing Italian daily publication Corriere della Sera as a source.
Enel already owns 29.9% of OGK-5, but is reportedly hoping to increase its interest to 70% by the end of 2007, the Italian publication has reported, without naming its sources. Meanwhile, the outstanding 30% will stay in the hands of Russian state-owned power producer RAO UES.
According to Corriere della Sera, as cited by Thomson Financial, Enel invested approximately $1.8 billion for its 29.9% stake in OGK-5 and is aiming to spend an additional $2.2 billion over the next five years.
OGK-5 and Enel’s investment arm recently announced a strategic partnership that will see them exchange experience in various areas and co-operate on employee training programs, exchange of delegations, and new production and management technologies.
Thomson Financial also reported that, on August 31, 2007, three Enel representatives will gain places on the board of OKG-5.