Enel Wins Bidding War for Share of UES Interest

Enel has paid UES $1.52bn for a 25% holding in OGK-5. The Italian energy giant saw off the competition from rival bidders E.ON Russian Power, RUSAL and Npvatek. The initial bidding price had stood at $953m.

OGK-5 was created in 2004 following the restructuring of electricity monopoly UES. It has an installed capacity of 8.67GW, some 4% of the total capacity in Russia. It has plants throughout Russia, including the fast developing Urals.

Following its defeat, E.ON Russian Power announced lpans to turn its attention the new share issue by OGK-4. OGK-4 and OGK-5 are two of the six wholesale power generating companies founded in the 2004 restructuring.