Russia TGK-4 to hold $675 mln rights issue Apr 28-29

MOSCOW, April 25 (Reuters) - Russian electricity producer TGK-4 (TGKD.MM: Quote, Profile, Research) will hold a rights issue of up to 586 billion new shares at 0.027 roubles each, the company said in a statement on Friday.

Through the rights issue the company will offer up to 41.96 percent of its share capital before the sale and 29.56 percent after.

It would raise up to 15.82 billion roubles ($675.2 million) if all the shares are placed.

Investors will be able to buy the newly issued shares starting April 28 until no later than April 29, TGK-4's statement said.

The total number of shares issued will be determined on May 7, after the company decides how many existing TGK-4 shareholders will have used their pre-emptive rights to buy more shares.

The list of shareholders with pre-emptive rights was fixed on July 16, 2007, when the company voted at a shareholders' meeting to hold the rights issue.

Capital raised from the offering will go towards building new electricity generating capacity as part of its investment programme, which calls for more than 50 billion roubles ($2.13 billion) to be spent on the firm's development by 2010.

Onexim, the investment vehicle of billionaire Mikhail Prokhorov, bought a stake of around 50 percent in TGK-4 this month for $508.5 million, paying 0.027 roubles per share, the same as the price of the rights issue [ID:nL07188412].

Initially pegged as an emerging giant in the Russian power sector, Prokhorov had turned his focus away from the industry in recent months because of a difficult asset split with his former business partner, Vladimir Potanin.

But with the purchase of TGK-4, which provides power and heat to 11 regions west of Moscow, was seen as a sign that Prokhorov could be reviving earlier plans to build up a large electricity holding company. (Reporting by Simon Shuster, editing by Will Waterman)