HydroWGC Completes the First Stage of its Consolidation
Moscow. 10 January 2008. 20 subsidiaries and dependent companies
of OAO "HydroWGC"* have merged with their parent company, thus completing the
first phase of the HydroWGC consolidation process.
Yesterday, on 9 January 2008, entries were made on the Unified State
Register of Legal Entities regarding the termination of activities of OAO "Volzhskaya
HPP", OAO "Zhigulevskaya HPP", OAO "Votkinskaya HPP", OAO
"Sayano-Shushenskaya HPP named after P.S. Neporozhny", OAO "Zeyskaya
HPP", OAO "Sulakenergo", OAO "Zelenchukskie HPPs", OAO
"KabbalkGES", OAO "Dagestan Regional Generation Company", OAO
"Stavropol Electricity Generation Company", OAO "Zagorskaya PSPP", OAO
"Bureyskaya HPP", OAO "Severo-Osetinskaya HGC", OAO
"Cheboksarskaya HPP", OAO "Nizhegorodskaya HPP", OAO
"Saratovskaya HPP", OAO "Kamskaya HPP", OAO "Cascade of
Verkhne-Volzhsky HPPs", OAO "Kabardino-Balkarskaya Hydrogeneration
Company", and ZAO "EOZ". On 26 December 2007, MICEX Stock Exchange and OAO
"RTS" discontinued trading in shares of the merging companies.
The state registration of the reports on the results of the additional
share issues of OAO "HydroWGC" to be exchanged for shares in the merging
companies is expected in January or February 2008.
On 27 December 2007, Russia's securities regulator, the Federal Service
for Financial Markets (FSFM), registered the additional share issues of HydroWGC for the
purpose of the merger of its subsidiaries and dependent companies with HydroWGC. The
company issued a total of 39,193,726,707 shares, par value RUB1 each. The ratios for
exchanging the merging companies' shares for ordinary shares in HydroWGC's were set based
on the appraisal of the market value of said shares as of 1 April 2007. The shareholders
of OAO "HydroWGC" approved the increase of the company's authorized capital for
the merger at the EGM held 12 October 2007.
The Company expects to complete the listing process on the MICEX Stock
Exchange and RTS Stock Exchange in February 2008.
The intended structure of HydroWGC is planned to be formed by July
2008. By that time, OAO "Cascade of Nizhne-Chereksky HPPs", OAO
"Irganayskaya HPP" and the companies to be created during the final phase of RAO
UES reorganization, OAO "HydroWGC State HoldCo" and OAO "HydroWGC Minority
The unified company will ensure a higher efficiency of its assets and
cash flow management, consolidate the investment resources needed to further develop
Russia's hydropower potential and advance new renewable energy sources.
* OAO "HydroWGC" is a subsidiary of RAO "UES of
Russia" established in the course of the energy sector reform. It is Russia's largest
power generation company in terms of installed capacity. HydroWGC comprises 49 hydropower
plants with the total installed capacity of 23.3 GW.