OREANDA-NEWS, State stake in TGC-2 is to be sold off in February 2008 along with additional stock offering. In February 2008, TGC-2 plans to float additional shares along with the sale of the government's stake. Potential investors include Norilsk Nickel, Gazprom, Trans Nafta, Enel, E.ON and Fortum. According to experts of Finam investment company, raising funds for investment projects will enable TGC-2 to strengthen its foothold  on the market and implement its plans to boost financials within the shortest possible time.

Deputy CEO for Development and Corporate Governance of TGC-2 Valery Ermakov said at the meeting with equity research analysts оn October 11 that his company will float additional shares in February 2008. The Russian government's stake in the utility will be sold simultaneously with the additional stock offering.

TGC-2 plans to raise around Rub 9 bln ($361.15 mln) from an additional stock offering. Over 440 bln additional shares are to be issued, which corresponds to 39.6% of the utility's initial charter capital and 28.37% after the flotation. According to experts estimates, the Russian government's equity position in TGC-2 slightly exceeds 23% of the upsized charter capital. Thus, a controlling interest in the utility (51.4%) will be offered to investors. Earlier it was reported that NorNickel, Gazprom and Trans Nafta eyed the company's shares. Foreign investors (Enel, E.ON. and Fortum) could also bid. TGC-2's core minority shareholder Prosperity Capital Management with 23% of the charter capital has yet to adopt a decision on its stake in TGC during an additional stock offering.

By 2011, TGC-2 plans to build 1,145 mW of generating capacities. The investment program stands at Rub 38.4 mln ($1.54 mln). The main sources of financing will be in-house funds (21%), borrowed resources (20%), project financing (36%) and an additional share issue (23%). We believe that raising funds for investment projects will enable TGC-2 to strengthen its foothold on the market and implement its plans to boost financials within the shortest possible time.

TGC-2 includes generators from six regions – Arkhangelskaya, Vologodskaya, Kostromskaya, Novgorodskaya, Tverskaya and Yaroslavskaya. Four regions out of the six face an electricity shortage. What's more, TGC-2 is located between two large regions: Moscow and St. Petersburg, which could aggravate electricity shortage in the genco's area of presence. Thus, TGC-2 is a very promising company in terms of commissioning new generating facilities.