Eurosibenergo offers US$2 billion for Norilsk stake in OGK-3

Bloomberg has recently reported that Eurosibenergo sent an offer letter to Norilsk Nickel proposing to acquire the latter’s 79% stake in OGK-3 for approximately US$2 billion (subject to due diligence). The offer price is based on the current market price of OGK-3. Eurosibenergo plans to finance the deal through bank debt (according to russian newspaper Vedomosti, two banks have already expressed interest in the deal).

The news are definitely positive for OGK-3 and negative for Inter RAO. Earlier Inter RAO offered to acquire OGK-3 based on the market price, but paying with its own shares, which would likely come with a one-year selling freeze requirement. At the same time, Eurosibenergo’s proposal is based on cash payments and a similar valuation. 

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