Mosenergo Set to Float Shares

The board of Moscow utility Mosenergo has decided to prepare for the sale of global depositary receipts representing shares now owned by the state, a source close to the company said Monday.

The government controls 21.16 percent in Mosenergo through the state-controlled Unified Energy System.

Another source present at a board meeting on Monday said the decision to float shares on foreign exchanges did not necessarily prevent the government's stake being sold to Moscow city government, as was previously planned.

"The decision on whether we will go ahead with the sale [to the city] will be made separately in the course of the next three weeks," the source said.

If this sale does not materialize, the lengthy preparations for flotation will proceed and take at least nine months.

Mosenergo is controlled by Gazprom, which has been the most active player in buying privatized electricity assets.