Fortum buys Russia's TGK-10 stake for $767/kW
MOSCOW, Feb 28 (Reuters) - Finnish utility Fortum (FUM1V.HE: Quote, Profile, Research) said on Thursday it bought a stake in Russian power producer TGK-10 (TGKJ.MM: Quote, Profile, Research) for a record price of $767 per kilowatt of capacity and said it will also buy new shares to gain control.
Fortum offered a total of 28.6 billion roubles ($1.18 billion) for the government's 255.6 million ordinary shares, or 111.8 roubles ($4.62) per share, a premium of more than 8 percent to the current market price of 103 roubles per share.
TGK-10 will also hold a sale of 633 million new shares, equal to 57.73 percent of the company after the sale, and Fortum said it will also buy these shares to gain control of the company.
TGK-10's stock was up over 9 percent in evening trading on the Micex exchange in Moscow. Fortum was up over 1.8 percent in Helsinki at 3:30 GMT. (Reporting by Olga Popova, Writing by Simon Shuster)
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