UES Scraps OGK-1 Sale, Plans Float

Unified Energy System has scrapped plans to sell power generator OGK-1 to a strategic investor after getting no bids and has decided to float one-third of the company's stock instead.

The sale of OGK-1, one of the country's biggest generating companies, had been expected to raise as much as $5 billion to $7 billion.

"The price which [potential] investors had offered for the shares of OGK-1 did not meet the company's management expectations," UES spokeswoman Margarita Nagoga said Thursday. UES will instead sell a new share issue of OGK-1 through an IPO to raise funds for the generator's investment program.

UES is in the process of selling off its assets, including 20 major power producers, as part of an industry-wide reform of the Soviet-era monopoly, which will see UES dismantled and mostly privatized by July 1.