Electric utility company Korea Electric Power Corporation is considering the acquisition of a stake in a Russian power company put up for sale by Moscow-based electricity titan RAO UES, reported Bloomberg, quoting a company statement delivered to the Seoul stock exchange.
According to the filing submitted by Korea Electric, the company has signed a memorandum of understanding with RAO UES to take part in the privatization of the Russian electricity generation industry. The statement did not, however, reveal the acquisition target or any financial details of the possible transaction.
The divestiture of Russian energy firms is part of the Russian government’s decision to split up RAO UES by July 2008, in order to raise $120 billion to upgrade the region’s aging generation and power lines.