Moscow, 1 April 2008. Today, the consolidation of two interregional distribution
companies, OAO "North-West IDC" and OAO "Volga IDC", was completed.
Yesterday, on 31 March, Center, Privolzhye, South, and North Caucasus IDCs were granted
the status of consolidated operating companies after the distribution companies within
their configurations merged with and into the IDCs.
Previously, on 29 February 2008, a "pilot" Center and Privolzhye IDC
completed its consolidation. Thus, seven IDCs have been established out of the eleven to
At the DCs' extraordinary general meetings held in December 2007 - January 2008, the
companies shareholders approved the merger of the DCs with and into North West, Volga,
Center, Siberia, South, and North Caucasus IDCs, respectively, as well as the Merger
Agreements and the Transfer Deeds.
The merger of DCs within Urals IDC is scheduled for 1 May 2008.
The shares of the merged companies are to be converted into additional ordinary shares
in IDCs. As a result, all DC shareholders become shareholders in the unified operating
company (IDC). RAO "UES of Russia" will maintain its controlling interest in the
Shares in the "pilot" company, Center and Privolzhye IDC, will be floated on
the stock market in early April 2008. Shares of the other six IDCs created to date are
expected to float on RTS Stock Exchange and MICEX Stock Exchange in May-June 2008.
The resolution to increase the number of IDCs from 4 to 11 (without taking into account
the IDC in the Russian Far East)*, the new configuration for the IDCs to be created
according to the principle of territorial adjacency and comparable size of assets of the
distribution companies was approved by the Board of Directors of RAO "UES of
Russia" on 27 April 2007. The Russian Government's Order of 19 December 2007 provides
for a new configuration of the IDCs and a new model for the creation of operational
companies in the distribution segment.
The intended model for the operation of IDCs is a unified operating company created
through merger of the distribution companies which make up its configuration, except for
certain DCs, such as OAO "Lenenergo" and OAO "Tyumenenergo", as well
as the DC on the basis of the Moscow City and Moscow Region distribution grids, which will
be established by 1 July 2008. The new IDCs as unified operating companies will have a
greater investment attractiveness and financial and technological reliability.
OAO "Moscow United Electricity Grid Company" (MOESK).
This announcement was disclosed as a material fact in the Interfax newswire at 19:05
hours Moscow time on 1 April 2008 in accordance with the requirements of the Federal
Service for Financial Markets of Russia.