Allen & Overy advised INTER RAO UES in connection with the acquisition of the power generation business of Bashkirenergo, a major Russian producer of electricity and heat operating in Bashkortostan.
The transaction was structured in two stages: an acquisition by INTER RAO UES of additional shares in Bashkirenergo from AFK Sistema and minority shareholders of Bashkirenergo (resulting in INTER RAO UES holding 72.91% voting shares of Bashkirenergo) and a further reorganisation of Bashkirenergo, resulting in the transfer of the power generation business to INTER RAO UES. The reorganisation of Bashkirenergo was carried out in the form of a demerger into Bashkir Power Grid Company (holding the power grid assets of Bashkirenergo) and Bashenergoaktiv (holding the power generation assets of Bashkirenergo), resulting in AFK Sistema holding 92.48% of the voting shares in Bashkir Power Grid Company and INTER RAO UES holding 92.48% of the voting shares in Bashenergoaktiv. Immediately following the demerger, Bashenergoaktiv merged into INTER RAO UES resulting in the transfer of the power generation business to INTER RAO UES and the minority shareholders of Bashenergoaktiv becoming shareholders of INTER RAO.
Allen & Overy corporate partner, Anton Konnov, who is based in Moscow and led the team, commented: “This is an important deal for the Russian power market and we are proud to be advising on this landmark transaction and help INTER RAO UES to implement its development strategy. Among other things, this transaction demonstrates Allen & Overy’s increasing capabilities in the Russian power sector.”
Anton Konnov was supported by associates Anton Mogilevsky, Gareth Irving, Nathaniel Luker, Bulat Zhambalnimbuev and Timur Bayramov.
INTER RAO UES is a diversified energy holding working in various sectors of the Russian and international electric power industry. INTER RAO UES is a leading exporter and importer of electrical energy in Russia, actively increasing electricity generation and sales, and developing new lines of business. AFK Sistema is Russia’s largest publicly listed investment company. Incorporated in 1993, AFK Sistema is now one of Russia’s top-10 companies by revenue and is one of the largest investment companies in the world. Sistema was ranked number 342 in the Fortune Global 500 list. AFK Sistema owns a diverse set of public and private companies, such as MTS, Bashneft, Detsky Mir, MTS-Bank, Medsi, Intourist, Russneft and others.
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