Business News

Report: Russian Magnate Makes Offer for TET Power Plant

Trbovlje, 27 November (STA) - Russian magnate Oleg Burlakov has made an offer for investment in thermal power plant Trbovlje (TET), the daily Delo reports on Tuesday. The report was confirmed by TET majority owner, state-owned utility HSE, but details on the deal remain a business secret.

Unofficially, Burlakov has made a binding offer worth EUR 15m, which is however not to the liking of the HSE. Burlakov reportedly also promised to keep all 200 jobs.

The HSE is reserved about the bid, saying only that they have not spoken to the potential buyer yet nor made any decisions. The HSE has an 82% stake in TET.

TET on the other hand is not familiar with the offer and the management is concerned that it might be a while before they are.

TET employees believe the Russian investor would preserve their jobs, which might be in jeopardy without investments in TET, according to the paper.

Unofficially, Burlakov is supportive of the planned boiler renovation, which is to cost EUR 70m, but it is unclear whether he supports the planned construction of a gas-steam unit worth between EUR 100m and EUR 150m.

It is also unclear what kind of share in the power plant would Burlakov get for EUR 15m. TET's assets are estimated at over EUR 31m. Burlakov has also co-funded a due diligence at TET commissioned by HSE.

Apart from technical parameters and financial and accounting factors, the due diligence assessed TET's value, which remains a well kept secret, the paper says.

TET's other owner, NFD holding (18%), also refused to reveal the value of its stake in TET, which has been on sale for several weeks, but unofficially, the stake is no longer in NFD's hands, as it had been put up as collateral for a loan, according to Delo.

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