Enel Russia’s board approves sale of coal power plant to Siberian power company

Enel Russia, a unit of Italy’s Enel, said on Thursday its board has approved the sale of its largest coal power plant to Kuzbassenergo, owned by Siberian Generating Company (SUEK), for at least 21 billion roubles ($323 million). The sale of the plant, Reftinskaya GRES, is still subject to shareholder approval, it said, adding that an extraordinary shareholders’ meeting is scheduled for July 22.

Enel Russia has been trying to sell the coal plant, its largest asset with 3.8 gigawatt capacity, since 2016. It said it expects to transfer ownership of the Reftinskaya GRES plant within 1.5 years of the agreement coming into force. The price is subject to adjustments of up to 5%, Enel Russia said.

“The disposal of coal-fired Reftinskaya GRES perfectly fits with the Enel Group’s global growth pattern focused on pursuing a more sustainable business model,” Italian parent Enel said in a separate statement.

Kuzbassenergo is controlled by Russian businessman Andrey Melnichenko who in May 2018 was mentioned as a potential buyer of Reftinskaya GRES, according to sources familiar with the matter at the time.

$1 = 65.0911 roubles Reporting by Anna Rzhevkina;