Gazprom Registers Purchase Of TGK-1 Stake, After Delay

Gazprom has registered a 28.69 percent stake in power producer TGK-1, Gazprom said in a statement Thursday.

Although Gazprom has said it has paid for effective control of TGK-1 with a stake of around 47 percent, the registration suggested that the gas company may not yet have consolidated the shares under one roof.

Gazprom acquired the 28.69 percent stake in TGK-1 in September and paid for it in March. But it did not complete the registration with the Federal Service for Financial Markets until Thursday.

At the time of the payment in September, Gazprom's domestic gas sales arm, Mezhregiongaz, which handles many of Gazprom's operations in the power sector, said Gazprom had paid for a 47 percent stake in TGK-1, giving it effective control.

A 17 percent stake in TGK-1, however, was bought not by Gazprom, but by a Gazprom-linked firm called Russian Energy Projects.

Under Russian corporate law, an investor who acquires a stake of more than 30 percent in a company has to make a buyout offer to the existing shareholders of that company at the purchase price -- often an expensive legal burden.

No buyout offer has been made to shareholders of TGK-1, in which Finland's Fortum owns a stake of roughly 25 percent.

Gazprom paid $709 per kilowatt of TGK-1's power generating capacity, according to figures from UES.

With an installed capacity of 6.2 gigawatts, TGK-1 provides power to the northwest of Russia, including St. Petersburg and the Leningrad region, and exports some of its power to Finland and Norway.