OREANDA-NEWS. March 10, 2010. TGK-13 (RTS: TGKM) has sold off its share package in Krasnoyarsk Hydro-Power Plant (RTS: KRSG). The genco’s share in Krasnoyarsk HPP has shrunk from 25% to 0.0196%. The transaction price has not been disclosed.

We are upbeat on the news. Even though we are unable to value the deal from an economic viewpoint without knowing the transaction price, we believe TGK-13 is unlikely to have sold the package on unfavorable terms. At the same time, TGK-13 sold off a non-core asset, which did not produce any income. As for the proceeds, they could be allocated to the expansion and development if its core business. The news could be of a negative nature for Krasnoyarsk HPP minority shareholders: if Eurosibenergo acquired the share package, its share in Krasnoyarsk HPP could potentially exceed 93%, which could pose the threat of a forced share buyout.