Italian power company Enel is believed to be interested in buying a stake in Mosenergo, the largest regional utility in Russia.
Mosenergo, the largest power utility of Russia’s largest urban area, Moscow, is poised to go private. The move makes it an enticing prospect for foreign investors, which includes Enel, according to the Italian company’s CEO Fulvio Conti.
Fifty one percent of Mosenergo will be auctioned off, probably by the end of the year, by Russian state power group Unified Energy Systems, according to AFX quoting Finanza & Mercati.
However, Enel faces stiff completion for its desired stake in the Moscow power provider from Russian gas giant Gazprom. Gazprom already owns a 25% share of Mosenergo through its subsidiary Gazprombank, according to Vedomosti.
Although it is unclear at this stage how much either Enel or Gazprom are prepared to invest in Mosenergo, UES’s stake in Mosenergo is estimated to be worth $750 million to $1 billion.