OREANDA-NEWS. May 21, 2010. RusHydro is to acquire a 40% state share package in Irkutskenergo, a spokesperson at the hydropower monopoly said. The transaction is to be carried out in two phases: in the first phase, the share package is to be handed over to Inter RAO UES; in the second phase, RusHydro is to enter talks over taking full possession of the share package.

RusHydro’s coming to Irkutskenergo charter capital could push up demand for both companies’ shares. The deal could enable RusHydro to increase its presence in the electricity market, and with the help of fuel-efficient and high-quality capacities. Irkutskenergo obtains a strong strategic investor. A controlling share in Irkutskenergo presently belongs to a company affiliated with Oleg Deripaska. Irkutskenergo supplies electricity to Rusal with a long-term contract, and Rusal profits more under this contract than the genco. Being a minority shareholder, the state has not taken any initiative in the matter. If RusHydro becomes a Irkutskenergo shareholder, this should firstly weaken the influence of the majority shareholder, whose actions have not always coincided with minority owners’ interests. Secondly, partnership with RusHydro should open up new development opportunities for Irkutskenergo.