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. Last Updated: 07/27/2016

Mordashov Buys Into Turbines

Alexei Mordashov, the main owner of steel company Severstal, has agreed to buy a 30.4 percent stake in turbine maker Power Machines from Interros, a source familiar with the deal said Friday.

Vladimir Potanin's Interros holding said earlier it had agreed to sell the stake in Power Machines to a Russian strategic buyer. "We have found a good, strategic investor at a good price," Interros deputy head Sergei Batekhin said without naming the buyer. "The price is close to market levels."

The source confirmed only that a company controlled by Mordashov was the buyer, without elaborating. Severstal was not immediately available for comment.

Before the transaction can go through, the stake must be offered to existing strategic shareholders — state-controlled utility Unified Energy System and Germany's Siemens, which each own a one-quarter stake.

Both have a right of first refusal on the deal, which comes as the country reforms its electricity network, spinning off power generating companies from UES and selling them to outside investors.

UES and Siemens have 30 days to express their interest, and if Siemens does so, regulatory approvals would take another 100 days, Batekhin said.

UES was not immediately available for comment, but Interfax quoted a UES spokesman as saying that it had been informed of the proposed sale and would make use of the 30-day period to review its options.