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. Last Updated: 07/27/2016

Enel Offers to Buy Up OGK-5

Italy's biggest utility Enel has offered 4.428 rubles (18 cents) per share to buy out minority shareholders in wholesale power generator OGK-5, Enel said Thursday.

Enel, which already holds 37.15 percent in OGK-5, said it would buy up to 22.23 billion shares, or 62.9 percent, of the firm. The offer expires 80 days after OGK-5 receives it, the statement said.

Under Russian corporate law, an investor with a more than 30 percent stake in a listed company is obliged to make a buyout offer to minority stakeholders.

Enel's head of international development Andrea Brentan said last month that Enel aimed to acquire at least 50 percent plus one share in OGK-5, but would not raise its stake above 74 percent.

Industry sources have said German energy giant E.On as well as United Company RusAl, the world's largest aluminum producer, have said they also would consider buying stakes in OGK-5.

Foreign and Russian strategic investors have shown strong interest in buying into the Russian generation companies to be spun off from UES.

Enel and E.On have already bought stakes in two OGKs, and Gaz de France and Korea Electric Power Corporation have shown interest in entering the country's power sector.

OGK-5 has four thermal plants with a total capacity of 8,700 megawatts in regions where demand for electricity is outpacing capacity.