German utility RWE's (RWE.XE) joint bid for the Russian government's 33% stake in regional power generator OAO TGK-2 (TGKB.RS) is likely to be the highest, a person familiar with the matter told Dow Jones Newswires Thursday.
A stake of that size is worth a little over $400 million at current market levels.
RWE and Russian petrochemical company Syntez Group are bidding jointly for the company, which the same person said would be sold at a price equating to $500-$600 per kilowatt of installed capacity.
Should its offer prove successful, RWE is also likely to participate in TGK-2's additional share issue, which will take place simultaneously with the sale of the government's stake, the person added.
A spokesman for former electricity monopoly RAO Unified Energy System of Russia (EESR.RS), TGK-2's biggest shareholder, said it would name the winner Friday.
TGK-2, predominently based in central Russia, plans to sell new shares representing almost 40% of its existing share capital, with present owners including Prosperity Capital able to exercise preemptive rights.
Prosperity may also bid for the government's stake along with OAO Gazprom's (GAZP.RS) banking arm Gazprombank, Germany's Evonik and miner OAO Norilsk Nickel (GMKN.RS), the person said.
After preliminary discussions, Japanese Mitsui (8031.TO) and British International Power (IPR.LN) are unlikely to bid, the person added.