OREANDA-NEWS. Complex Energy Systems (CES) has set the buyout price lower than the current market valuations, which, according to Finam investment company, reduced the investment appeal of TGC-9 shares in investor eyes. However, given that the current price currently exceeds the buyout price, the experts will not likely see many shares presented for buyout and CES will not likely spend more than 2-3% of the charter capital or up to $50 mln.

CES has raised its interest in TGC-9 to over 30% and is prepared to make a buyout offer to minority shareholders at Rub 0.007244 ($0.00029) per share. The company submitted the offer to FSS on October 4 and the financial watchdog is to review it within 15 days. As of October 5 close, TGC-9 fell 2.63% to Rub 0.0074 per share on MICEX, up nearly 2% on the buyout price offered by CES.

As reported earlier, TGC-9's BoD approved at the June 27 meeting the shareholders' decision to uplift the utility's charter capital by 65%. Complex Energy Systems currently owns over 30% in TGC-9. CES has set the buyout price lower than the current market valuations, which  reduced the investment appeal of TGC-9 shares in investor eyes. However, given that the current price currently exceeds the buyout price, the analysts will not likely expect many shares presented for buyout and CES will not likely spend more than 2-3% of the charter capital or up to $50 mln.

If the additional shares are floated at the current market price, the experts expect TGC-9's buyer to shell out $1.07 bln. If CES buys out the entire amount of additional shares, the company's stake in the utility will climb to at least 57% after the placement and CES will not need to pay $0.66 bln for the state's stake based on TGC-9's share price up 18% on the current market valuations (the price is set by UES BoD). Meanwhile, if the shares are placed at the minimum price set by UES, CES will have to allocate $1.9 bln to TGC-9 shares (the additional stock offering and the Russian government's equity position) and CES will upsize its stake to 78% after the flotation.

"Earlier, we reported details of TGC-9's additional stock offering. At present, TGC-9 is valued at $1.65 bln or $571/kW. According to our estimates, the utility's fair price is $2.1 bln or $710 per kW. We assign a Buy recommendation on TGC-9 with an estimated price, based on a peer analysis, of $0.000406 per share," Finam's expert Birg Semen  concludes.