REP Holding merged into Gazprom Energoholding Group

December 23, 2019 11:00

Transactions on acquisition of 100 % of the authorized capital of JSC REP Holding by Gazprom Energoholding Group were made. They were carried out with participation of GPB Development of Assets, which is a part of Gazprombank, and JSC GEH Industrial Assets, which acted as the buyer of RAP Holding and also PJSC OGK-2 and PJSC Mosenergo, which provided funding in order to restructure the debt load of JSC REP Holding.

The range of acquired assets also includes JSC Nevskiy Zavod (100 %) and JSC Electropult-Sistema (51 %). Under the agreement of the parties, JSC Nevskiy Zavod is not included in the scope of the transaction and remains under control of its former shareholders.

“Implementing the new Strategy of PJSC Gazprom in electric power industry, Gazprom Energoholding diversifies its activities by means of entering new segments and becomes a large player in the market of power engineering industry. At the facilities of REP Holding, a reliable long-term partner of Gazprom, we will carry out development of manufacture of both gas-transportation systems equipment and the equipment used at electric power enterprises. This shall enable the achievement of synergistic effect, among other things, by means of increase of manufacturer-customer interaction efficiency, and through measures for further manufacturing localization.” — noted Denis Fedorov, Director General of Gazprom Energoholding.

“This transaction became possible by virtue of professional work done by teams of Gazprombank, Gazprom, REP Holding and GPB Development of Assets to increase overall performance of the enterprise, as a result of which it was possible to essentially improve its financial indicators and to implement the actions aimed at increase of its capacities, implementation of advanced design solutions and development of product line. “Currently, REP Holding is successfully implementing a number of nationwide significant strategic projects” — noted Tigran Hachaturov, the Deputy Chairman of the Management Board of Gazprombank.

Background

Gazprom Energoholding LLC is a specialized company (a wholly owned subsidiary of PJSC Gazprom) running the Gazprom Group companies in electric power industry. Gazprom Energoholding is the leader in production of heat and power by heat generation companies in Russia. Gazprom Energoholding plants produce about 1/6 of all the electric power of the Unified power system of Russia. Gazprom Energoholding takes the lead positions in the heat supply market of the Moscow region — the world's largest heat market. The main production companies of Gazprom Energoholding are PJSC Mosenergo, PJSC TGK-1, PJSC OGK-2, which produce power and heat energy, mainly based on the use of natural gas and coal, and the largest heat supply company of the Moscow region — PJSC MOEK.

GEH Industrial Assets is a specialized company of Gazprom Energoholding Group created for consolidation of assets in the field of power mechanical engineering and manufacture of electrotechnical equipment.

JSC REP Holding is a developer, manufacturer and supplier of new generation power equipment, including industrial gas turbines of capacity from 16 to 32 МW, steam turbines, centrifugal and axial compressors, gas-compressor units and electrical equipment. It carries out design development, manufacturing and complex deliveries of power and electrotechnical equipment for oil and gas, metallurgical and chemical industry, power industry and electric network complex. Supplied equipment is widely applied for upgrade of gas-transport systems, construction of modern power units and power plants, in small-scale power generation, LNG market and a number of other branches.

GPB Development of Assets LLC was formed in January 2017. GPB Development of Assets LLC is a specialized company of Gazprombank (Joint-stock company), created for increase of operational efficiency of assets management, restructuring of problematic assets and support of M&A transactions of controlled assets.


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