Nizhegorod Energy Sales Company - Nizhnovenergosbyt

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On May 22, 2007, the state-owned RAO UES sold its 49% equity stake in NizhnovEnergoSbyt to Transneftservice-S LLC. NizhnovEnergoSbyt was the largest energy distribution company in Nizhegorodskaya Oblast. The company was registered in Nizhniy Novgorod on April 1, 2005 after it was spun off from its parent NizhnovEnergo. The company had about 54% of the energy market in the Oblast servicing 25,213 commercial and about 1.3 million of residential customers. Two companies competed for the government-owned stake: Transneftservice-S LLC and KIT. The starting price was US$29 million. Transneftservice offered the highest price or US$79 million and won the auction. Transneftservice was one of the largest independent energy distribution companies in Russia active in 36 regions. RAO UES sold its stake in NizhnovEnergoSbyt as part of the energy sector reform to allow competition and bring in much needed investments in the sector. As of end of 2009, NizhnovEnergoSbyt was principally owned by Transneftservice (49.0%) and ZAO Depository Clearing Company (44.0%). http://www.nsk.elektra.ru/about/