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Printed from: http://petersburgcity.com/news/business/2003/02/11/lenenergo/|
Business news, 11.02.2003 16:35
Lenenergo shares gain USD 45 million in one weekThe market value of Lenenergo rose by about USD 45.5 million last week to USD 252.8 million. The value of the electricity company's shares increased by over 18%. According to Alexander Korneev, an analyst at Aton Capital, the market value of all of Russia's electricity generating companies increased last week, but only St. Petersburg's generator saw such a sharp rise in its share price. 'Lenenergo's share price increased due to the news that Fortum has bought 9.3% of the energy company's from E.ON, increasing its stake to 15.7%,' said Korneev. He added that, despite the absence of any statements from the Finnish company, the market was expecting positive news from Fortum, which accounted for the increase in the share price. 'It is good for Lenenergo to have a Western energy company as a leading minority share holder during its restructuring process, rather than a Russian energy consumer, as this will reduce the risk of assets being lost during restructuring,' believes Korneev. Andrei Likhachev, Lenenergo's general director, who confirmed that the company's market capitalization had risen by almost 20%, believes that the main reason for the increase in the company's share price is the Lenenergo road show that took place last week in Europe. He believes that during meetings with investors 'management processes were given a positive evaluation, and the fact that the company has become transparent and is making investments made a strong impression.' Likhachev added that during the road show the company's financial figures and investment results aroused particular interest. Referring to his conversation with E.ON's management, Likhachev said 'the German company considers its investment in Lenenergo to have been its most successful venture in Russia and does not exclude buying Lenenergo shares again in certain circumstances.' He said that not long before its deal with Fortum, E.ON had considered acquiring a further 1-2% of Lenenergo's shares.
News source: www.lenpravda.ru
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