Oct. 27 (Bloomberg) -- OAO RusHydro, Russia’s largest renewable energy producer, is heading for its biggest weekly gain this year on plans to issue new shares and acquire stakes in other electricity companies partly owned by the government.
The American depositary receipts rose 5.9 percent to $3.97 at the close of trading in New York, bringing its gain to 15 percent this week. That would be the biggest weekly advance since a 20 percent increase in the week ending Dec. 31, 2010.
RusHydro may transfer new shares to get a controlling stake in RAO Energy System of East, a 40 percent stake in OAO Irkutskenergo and other assets, said Dmitry Kotlyarov, a Moscow- based analyst at OAO Gazprombank. The company’s board will meet tomorrow in Moscow to announce the results of the transaction.
“The goal of this emission is for the government to transfer some of its assets to Rushydro,” Kotlyarov said via telephone. “The company will now own some thermal power generating assets and electricity distribution networks.”
The Russian government owns a 58 percent stake in RusHydro.
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