Itera holding negotiations on selling 10% in Armenian gas
distributing company

RosBusinessConsulting Database
October 11, 2004 Monday

Itera is holding negotiations on selling 10 percent in Armrosgazprom,
a source close to the company said. A large European investment
holding is among the potential buyers of a 10-percent stake in the
Armenian-based company, the source reported. The 10-percent stake
is valued at $28m, the source said. The press department of Itera
confirmed information about negotiations and declined to disclose
probable participants of the proposed deal.

Gazprom and the Armenian government both have 45-percent stakes in
Armrosgazprom. As Itera does not deliver gas to Armenia, the company
considers the possibility of disposing of this non-core asset, Itera
representatives said. Analysts believe that Gazprom may be interested
in acquiring Itera gas assets. Armrosgazprom controls Armenian gas
distributing networks.