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. Last Updated: 07/27/2016

Agency Sets Terms for OGK-3 Sale

Finland's Fortum, Italy's Enel and Russian energy and metals firms may all bid for a stake in power generator OGK-3, the Federal Anti-Monopoly Service said in a statement Wednesday.

The list of Russian firms that can bid for OGK-3, which is being spun off from power monopoly Unified Energy Systems, included metals giant Norilsk Nickel, gas monopoly Gazprom's electricity unit, and metals firm Mechel.

OGK-3 will become the first power generation firm to be majority controlled by private capital when the $1.6 billion stake is auctioned as a single lot by Deutsche Bank.

The price for the 18 billion new shares will be determined Saturday, with the buyer to be chosen March 21.

The office said it was still considering whether to allow France's Gaz de France to bid for OGK-3 shares.

OGK-3, or Wholesale Generating Company No. 3, has six power generation plants with installed capacity of 8,500 megawatts, or over 5 percent of UES's generating capacity. Most of its power stations are fueled by coal, though two can use gas or fuel oil.

Six wholesale generators are being spun off from UES under reforms to create a competitive power market. They are seeking to raise fresh equity finance to upgrade their power assets.

OGK-3 is now 59.7 percent owned by UES. The firm's capital will be increased to give the buyer of the lot a 38 percent stake, leaving UES with 25 percent plus one share after the sale, enough to block board decisions.