British Midland Resources to buy stake in Armenian Electric Mains

The British trade and industry company Midland Resources Holding Ltd, thatwon a tender on privatizing the Armenian power grid, will purchase a 80.1percent block of shares in the Armenian Electric Mains company for $37m,the public relations department of the Armenian Energy Ministry told RBC.The other 19.9 percent of shares are estimated at $3m. It is expected thatMidland Resources will transfer $12m after an agreement is signed and theother $25m will be allocated to pay off Electric Mains' salary debts, debtsto budgets and the social security fund and to pay off credits. Accordingto the agreement, Midland Resources does not have a right to sell a 67percent stake in Electric Mains without permission of the Armeniangovernment and tender commission. Also it cannot mortgage the shares, theARKA news agency reported.Today, the Armenian government approved a decision of the commission on theprivatization of the power grid on recognizing Midland Resources as thewinner of the tender on privatizing Armenian Electric Mains..