RusHydro had approached Mitsui with a direct request to provide an indicative bid price for the purchase of 5% of RusHydro’s shares. RusHydro is Russia’s largest power-generating company and, with installed power generation capacity of about 33 GW, the second largest hydroelectric power producer in the world. If sufficient, the indicative bid price would ensure that Mitsui would receive a Letter of Intent to carry out more detailed due diligence and develop a firm offer for the shares. Mitsui thus required a market study and valuation report to support the development of the indicative bid price.
IPA provided the market study and valuation report which included the following:
With IPA’s support, Mitsui came to an agreement with RusHydro to purchase the 5% stake in the company. This sale was the first time that RusHydro’s shares had been sold to a foreign company.