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ARMENIAN POWER DISTRIBUTION NETWORK SOLD

Economy

British Midland Resources Company won tender for Armenian Power Distribution Network (PDN) privatisation. PDN 81,1 shares belongs to Europe Development and Reconstruction Bank. The bank could purchase the rest stocks for 2,85 million. However, the bank is concerned about the fact that buyer has no experience in the energy market. The government informed Eurobank, that the ill-experienced company took an obligation to run PDN with the help of an experienced company.

Eurobank reaction to the government statement is still unknown. If the bank does refuse to buy the shares, they will remain at government disposal or be sold to Midland Resources Company.

Competition results are to be confirmed at the government sitting within 2 days. Then a contract should be signed. The process of handing PDN to the new owner will take some 3 months.

It is worth to be mentioned that Midland Resources Company is known only as a Max Fruit Company shareholder. Another Max Fruit shareholder is MP Harutyun Pambukyan, who represents Max Group and acted as the transaction mediator. It is also known that Midland Resources Company is registered in offshore zone. The company meets tender’s eligibility criteria. Its 100-million annual turnover went through proper international audit.