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. Last Updated: 07/27/2016

OGK-3 Stake Price $920M

Norilsk Nickel will pay 23.6 billion rubles ($920 million) for the state's outstanding 11 percent stake in power company OGK-3, UES spokeswoman Marita Nagoga said Thursday.

Norilsk will pay state-controlled utility Unified Energy System 4.54 rubles apiece for 5.2 billion shares, Nagoga said.

The state plans to exit thermal power generation and will use some of the proceeds of the stake's sale to fund the expansion and upgrade of the electricity grid. UES will be broken up within 10 months to stimulate competition, and its shareholders will receive stakes in 25 of its units.

Norilsk plans to build a generation business based around OGK-3. The miner previously agreed to acquire 12.8 billion shares of the power company for 58 billion rubles.

Under Russian law, Norilsk was required to make a mandatory offer for the rest of the shares after raising its stake to more than 30 percent.

UES previously calculated that 19 percent of its 37.1 percent stake in OGK-3 was attributable to the state. The figure was revised to 11 percent after the government swapped some of its allocated shares for other electricity assets.