Midland Resources to sell Armenian power utilityÂ
Interfax
22.11.2004 Â
Yerevan. (Interfax) – Midland Resources Holding Ltd. intends to sell
Electric Networks of Armenia (ArmElNet), Armenia’s national electricity
distribution company, with Russia’s Unified Energy System (UES) among
the potential buyers, Yevgeny Glandunchuk, ArmElNet’s general director,
told Interfax.
Midland Resources is concentrating more on its metals business, which
will receive the proceeds from the ArmElNet sale, Glandunchuk said.
“The problem is in the price which buyers might offer,” he said. The
owner has not received any lucrative offers yet, he said.
It could take a year to sell the network, but by then it will
have become more expensive with the need to invest in it and reduce
electricity losses, Glandunchuk said. Anybody buying the company right
now could he safe in the knowledge that the outlay would be recouped
in eight years, he said.
He also said Midland Resources only had the right to sell 25% of
ArmElNet on its own and would need the Armenian government’s clearance
to sell the remaining 75%.
Midland Resources bought ArmElNet for $12.15 million in November 2002,
but pledged an additional $27.985 million to clear the company’s debts.
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