Moscow government will have AO MOSENERGO's grids…
As a result of AO MOSENERGO's restructuring, Moscow's electricity grid may go to the city's government
The verbal agreement between RAO UES and Moscow's government on transferring AO MOSENERGO's grid assets into municipal ownership may soon be put on paper. AO MOSENERGO's management proposes to make this scheme a part of the company's restructuring plan.
AO MOSENERGO is the biggest Russian energo. AO MOSENERGO's 2002 RAS net profit reached 646 million rubles while IAS net loss was 2.3 billion rubles with revenues of 56.3 bn rubles. RAO UES owns 51% stake in AO MOSENERGO, investment company Renaissance Capital owns around 12% of AO MOSENERGO shares. The rest of the company is owned by the city government and the Bank of Moscow (8%), as well as by individuals (around 7%). Ever since Chubais supporter Arkady Yevstafyev was chosen to run AO MOSENERGO, the Moscow government has repeatedly blamed AO MOSENERGO for unprofessional and poor management. AO MOSENERGO is out of Moscow leaders' influence, which the latter have always sought.
On Saturday Moscow mayor deputy Valery Shantsev spoke live on Moscow's Echo Radio Station saying that the city government seeks control over the electricity and heating-grid companies, which will be created as a result of AO MOSENERGO restructuring. RAO UES and AO MOSENERGO have agreed to this plan. We are now looking for ways to fulfill it.
Soon AO MOSENERGO, like the other Russian energos, will be split by lines of business. According to the initial restructuring scheme, the new companies, which will be created in place of AO MOSENERGO, will have the same shareholders and the same proportional ownership. However, in early 2003, the rumors spread that RAO UES agreed with the Moscow government to transfer two Moscow grid companies (electricity and heating grids) to the city government after AO MOSENERGO's restructuring. Nobody has ever seen this document, bur journalists and analysts have nicknamed it the "Chubais-Luzhkov Pact."
Yesterday RAO UES media relations head Andrei Yegorov did not negate the existence of the agreement, which had been mentioned by Shantsev. He told Vedomosti that these arrangements would be included in AO MOSENERGO restructuring plan, which had not been yet approved by RAO UES.
AO MOSENERGO first deputy general director for corporate governance and asset management Dmitry Vasiliev confirmed it. According to Vasiliev, AO MOSENERGO's restructuring plan envisages the creation of generation, electricity and heating grid companies, as well as service and supply companies in place of AO MOSENERGO. Next, electricity and heating grid companies will issue shares in favor of the city government, which will pay by transferring its assets. "It's too early to say what will be AO MOSENERGO's share, as the assets that would be offered by Moscow government will have to be assessed by independent appraisers, –Vasiliev says. Under the agreement, the Moscow government can claim the controlling or a bigger stake in these companies. So far, we don’t know what assets will be offered. Most likely, it will be Moscow electricity and heating grid assets."
According to the analyst from investment bank trust Andrei Zubkov, the Moscow government will have to pay for rights issue no less than $200 million (even if the whole city's government stake in AO MOSENERGO is converted into shares of new grid companies). Zubkov views the "Chubais-Luzhkov Pact" as a "negative but expected surprise" for AO MOSENERGO's minority shareholders. "Minorities' stake in AO MOSENERGO will be diluted but it may be not that bad, as the Moscow government will get a stake in the regulated business and leave the generation business in peace,"– Zubkov explained. According to him, the Moscow government is taking a tough stand and has great influence on the Regional Energy Commission. Most likely, the bureaucrats will not permit them to introduce tariffs, which would increase shareholder returns.
AO MOSENERGO's member of the board, the director of investment banking in Renaissance Capital Aleksandr Savin told Vedomosti that his company is well acquainted with AO MOSENERGO management's ideas, but so far is not ready to support it. Currently they are developing their own proposals.
Tatyana Yegorova |
