Enel Russia shares drop 17.5% on corporate news

MOSCOW. June 17 (Interfax) - Shares of Enel Russia (MOEX: ENRU) have dropped 17.5% to 0.46 rubles per share in early trading on the Moscow Exchange (MOEX: MOEX) on corporate news.

Italy's Enel is set to sell its 56.43% stake in PJSC Enel Russia to Lukoil (MOEX: LKOH) and the Gazprombank-Freesia fund, the Italian company said. According to Enel's announcement posted on the website of the Italian Stock Exchange, the company has concluded two separate agreements with buyers for a total of $135 million.

The transaction is expected to close in the third quarter depending on a number of conditions, specifically on the decision of Russia's Government Commission on Foreign Investments and the Federal Anti-monopoly Service (FAS), according to the announcement.

Enel Russia currently comprises three gas-fired power plants that include Konakovskaya GRES, Nevinnomysskaya GRES, and Sredneuralskaya GRES, as well as a commissioned wind farm in the Rostov region. A wind farm in the Murmansk region is expected to be 85% complete in July and 100% in October this year, while a wind power project in the Stavropol Territory has been canceled. The main shareholder of Enel Russia is Italy's Enel S.p.A. with a 56.43% stake.

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