TGK-11 Prices 2nd Share Issue

Power producer TGK-11 has priced its secondary issue at just over 4 kopeks per share, 30 percent above the opening price Wednesday, the company said, despite a court order to block the sale.

The announcement comes as the country's former electricity monopoly, Unified Energy System, said it had taken the main question off the agenda for its board meeting Friday — who will sell the UES assets that remain unsold once UES ceases to exist.

The pricing sent TGK-11's stock surging 18 percent to a record high of 3.54 kopeks, even though the company is embroiled in a politically heated dispute with Rosneft, which last month secured a court order to block the sale.

The placement of 181 billion new shares, which amount to 26 percent of TGK-11's expanded share capital, was to begin Wednesday and end 15 business days later, the company said.

Last month, a Russian court placed a freeze order on the sale until TGK-11 resolves its legal dispute with Rosneft.

At Friday's meeting, the board was to address the question of who will sell the UES assets that are left unsold by July 1, as may have to be the case with large generators TGK-11 and OGK-1.

A spokesman for UES said it was not yet clear how TGK-11 had announced the start of the share sale despite the court order to suspend it.

"We are trying to work this out ourselves," spokesman Timur Belov said.

A TGK-11 spokeswoman could not immediately comment.