Russian electricity monopoly RAO Unified Energy System of Russia has agreed to sell its 21.1% stake in Moscow generation company OAO Mosenergo to the city's government, business daily Kommersant reported Thursday, citing a UES spokeswoman.
The Moscow city government will buy the stake for significantly more than the current market price, the paper reported.
UES's board in October approved the sale of the Mosenergo stake on the open market, raising the possibility of placing the shares in global depository receipt form with international portfolio investors. At the same time, UES also told management to negotiate with the government of Moscow.
Mosenergo is controlled by gas monopoly OAO Gazprom, while the city of Moscow currently owns 5.4% of the generation company.