Page 101 - RusRPTOct19

previously sold another start-up Parallels to Canadian Corel for an undisclosed amount and founded a venture fund Runa Capital that has invested in more than 60 companies and completed 12 exits. Runa Capital’s latest deal was the sale of Nginx to American F5 Networks for $670mn.
9.2.8 Telecoms corporate news
9.2.10 Utilities corporate news
Russian mobile major Mobile TeleSystems (MTS) signed off on RUB120bn ($1.9bn) worth of financing with Russia's largest bank Sberbank, Reuters reported on September 23. MTS refinanced RUB70bn loan and added RUB50bn credit line from Sberbank.
Industrial electric energy consumers claim that Russian hydropower major RusHydro overpriced the RUB91bn ($1.4bn) investment programme for modernisation of 420MW of capacity on Russian Far East, Kommersant daily reported on September 18 citing the Union of Energy Consumers (UEC). As reported by bne IntelliNews, Russian utility majors are benefiting from massive state-sponsored capacity modernisation drive. Especially for renewable energy sources, the investment is being co-financed by higher tariffs that shares the costs with consumers. In this particular case the UEC complained to Prime Minister Dmitry Medvedev that the investment case is not optimised, with capital expenditures as high as an atomic power plant of comparable capacity. Analysts surveyed by Kommersant commented that higher cost could be attributed to weak development of infrastructure at Far East, a high transportation component, preparations of grids, and low competition in the region.
Russian aluminium producer United Company Rusal (US Rusal) has settled the conflict with Unipro utility major on the power supplies from the third block of BGRES facility, Kommersant daily reported on September 30. Reportedly, Unipro will compensate Rusal RUB386mn via a discount for bilateral contract for electricity supplies. The deal eliminates the risk of cancelling the contract, which has a material impact for Unipro with about 25% added to Ebitda per annum starting from 2020, BCS Global Markets estimated on October 1. The sum of the compensation, at the same time, stands at only 1.3% of Unipro's 2019 expected Ebitda.
RusHydro announced that its Board had approved the asset swap with SUEK and the conversion of Far East Company’s intercompany debt into equity. As a result of the deal, SUEK is to get Luchegorsky coal mine and Primorskaya GRES by transferring its stake in Far East Company to RusHydro (which is to be approved by the Federal Anti-Monopoly Service). As for the second part of the deal, RusHydro has provided RUB40.5bn of intra-company debt to Far East Company, out of the RUB65.8bn of the latter’s total debt portfolio, so the intra-company debt conversion into equity would lower the debt by 60%. The deals are slated to be completed by the end of 2019.
9.2.11 Metallurgy & mining corporate news
● Gold
101 RUSSIA Country Report October 2019 ww.intellinews.com