Formation of 10 Interregional Distribution Companies Completed
Moscow, 7 May 2008. OAO "Permenergo", OAO "Sverdlovenergo",
and OAO "Chelyabenergo" merged with Urals Interregional Distribution Company
("Urals IDC"), which brought the process of Urals IDC's consolidation to
completion. Previously, in March 2008, the shares in OAO "Kurganenergo" held by
RAO "UES of Russia" were contributed to the capital of OAO "Urals IDC"
in exchange for the IDC's additional shares, with Kurganenergo merging into Urals IDC. As
a result, to date, ten IDCs have been established out of the eleven to be created. The
formation of the Moscow City and Moscow Region IDC is expected to be completed in June
2008 through merger of OAO "Moscow City Distribution Company" (MGeSK) with and
into OAO "Moscow United Distribution Company" (MOESK).
In the course of establishment of 8 IDCs, the shares in the merging companies were
converted into additional ordinary shares in the respective IDC. As a result, all
shareholders in the regional distribution companies became shareholders in the respective
unified operating company, IDC. RAO "UES of Russia" will maintain its
controlling interest in the IDCs.
The "pilot" flaotation was launched by Center and Privolzhye IDC on 7 April
2008. Shares in the other 7 IDCs are expected to float on MICEX and RTS in May and June
The resolution to increase the number of IDCs from 4 to 11 (without taking into account
the IDC in the Russian Far East)*, as well as 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 on 19 December 2007 approved the new
configuration for the IDCs and the new model for the creation of operational companies in
the distribution segment.
The intended model for the operation of 8 IDCs is a unified operating company created
through merger of the distribution companies which make up its configuration, except for
regional 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 in the new
configuration. The unified operational companies will have a greater investment
attractiveness, financial and technological reliability.
OAO "North West IDC": OAO "Arkhenergo", OAO
"Vologdaenergo", OAO "Karelenergo", OAO "Kolenergo", OAO
"Komienergo", OAO "Novgorodenergo", and OAO "Pskovenergo";
OAO "Moscow United Electricity Grid Company" (MOESK).
This announcement was published as notice of a material fact in the Interfax newswire
at 16:30 Moscow time on 4 May 2008 in compliance with the requirements Federal Service for
Financial Markets of Russia.