OAO Inter RAO UES (IRAO) fell for a third day after Kommersant reported Russia’s state-controlled power generator and exporter may acquire Turkish energy assets.
Inter RAO dropped 0.6 percent to 2.77 kopeks by the close in Moscow, the most since June 22.
The utility set up the Inter Rao Turkey Enerji Holding unit to research the Turkish market, Kommersant reported. The business may acquire local energy assets, the newspaper said.
“Foreign expansion is one of the risks that we see for Inter RAO’s investment case,” VTB Capital analysts led by Mikhail Rasstrigin said in an e-mailed research note. “While the impact from potential acquisitions in Turkey would depend on the parameters of the deals, at this stage the news increases the general risk profile of Inter RAO and therefore might be negative.”
The company said on June 25 it will put its plans to expand overseas on hold while domestic regulation is being changed and utilities’ market values decline.
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