ESN group to sell core energy assets to Inter RAO UES

Russia's energy investment company ESN group, owned by tycoon Grigory Beryozkin, has agreed to sell its core energy assets to state-controlled power trader Inter RAO UES, Kommersant daily said on Wednesday.

Russia's energy investment company ESN group, owned by tycoon Grigory Beryozkin, has agreed to sell its core energy assets to state-controlled power trader Inter RAO UES, Kommersant daily said on Wednesday.

The paper quotes a source close to Inter RAO saying that the company was carrying out due diligence of TGK-14 power generating company, the Hydroproject research and consulting institute, and Rusenergoresource and Rusenergosbyt power supply companies.

"The companies intend to complete the asset evaluation and set the final price by the end of the year," the source said.

ESN group's assets will be swapped for shares from a new share issue by Inter RAO, which will take place at the end of 2010 or beginning of 2011, the source was quoted as saying.

Inter RAO intends to get several state and privately-owned energy assets as a result of the issue which will amount to 78 percent of the company's capital.

Before signing an agreement with Inter RAO UES, ESN group has to buy Russian Railways' 51 percent stake in TGK-14, because Inter RAO UES does not want to buy assets in instalments.

Metropol investment firm analyst Sergei Beiden said it was difficult to forecast ESN group's eventual stake in Inter RAO, but it would likely not exceed one percent.

Kommersant quoted another source familiar with the situation as saying that oil pipeline monopoly Transneft was also considering buying Rusenergoresource. Transneft is also negotiating with ESN over the purchase of a 49.96 percent stake in Energoterminal, which operates the Skovorodino oil loading terminal in Russia's Far East.

Some Kommersant sources also said that Beryozkin would sell his other businesses, including media and telecommunications.

MOSCOW, September 8 (RIA Novosti)