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Press-release

RAO UES Determines Results of Sale of TGC-2 and TGC-6 Shares

Information in this part of the press release is not intended for distribution in Australia, Canada, Japan or the United States of America.

Moscow, 14 March 2008. Today, the RAO UES Tender Commission has reviewed the bids for the 33.47% stake in OAO "TGC-2" owned by RAO "UES of Russia", which are attributable to the government stake.

Interest in the TGC-2 shares was expressed from Russian and foreign strategic investors, including International Power (UK), Mitsui (Japan), RWE and Evonik (Germany), Gazprombank, Norilsk Nickel Mining and Metallurgical Company and Prosperity Capital Management. The best bid was received from Kores Invest.

Kores Invest offered RUB9.3 billion ($392.9 million) for the 33.47% stake in TGC-2, or RUB0.025 ($0.001055) per ordinary share. This is 11% higher than the average weighted price of TGC-2 shares in January and February 2008, and corresponds to $568 per kilowatt of the company's installed capacity.

Kores Invest has also expressed an intention to take part in the open subscription for additional shares in TGC-2. Subscriptions for TGC-2 additional shares will be accepted from 28 March 2008 to 9 April 2008.

The proceeds from the sale of the "government stake" in TGC-2 will be used to finance the deficit of the FGC investment programme. The proceeds from the additional share issue will be used by TGC-2 to implement its investment projects: new capacity will be brought on line in all areas were the company operates, primarily in the Vologda, Novgorod, and Yaroslavl energy systems, where energy shortages are especially acute.

After the sale of the "government stake" and the share offering, RAO UES will hold at least 11.38% of TGC-2. These shares will be distributed among the minority shareholders in RAO "UES of Russia" after the Company's reorganization is completed.

***

The RAO UES Tender Commission named the best bidder for the 439,217,262,097 ordinary shares in TGC-6 ("government stake") held by RAO "UES of Russia", which makes 34.06% of the company's authorized capital before the proposed capital increase.*

The highest bid was submitted by the KES-Holding together with New Russian Generation as a minority partner. The price of $0.00106, or RUB0.025, per share offered by this bidder corresponds to $437 of the company's installed capacity.

Today, the TGC-6 Board of Directors will hold its meeting to determine the offering price for the additional share issue of TGC-6.

As a result of sale of the "government stake" shares in TGC-6, RAO UES will receive RUB10.98 billion, or more than $463 million, in funds from private investor. Also, it is expected that TGC-6 will raise about RUB14.25 billion in funds as a result of its additional share issue. Thus, the total proceeds expected from the additional share issue and sale of the "government-stake" shares in TGC-6 will make about RUB25.23 billion, or $1.065 billion.

The funds received by RAO UES from the sale of the "government stake" in TGC-6 will be spent on the FGC investment programme. The proceeds from the additional share issue will be used to finance the TGC-6 investment programme.

Among the key investment projects to be implemented by TGC-6 will be the construction of the Nizhegorodskaya CHPP with the capacity not less than 900 MW, modernization of the Igumnovskaya CHPP in the city of Dzerzhinsk, Nizhny Novgorod Region, modernization of the Ivanovskaya CHPP-2, and a heating capacity expansion project at the Sormovskaya CHPP in Nizhny Novgorod.

After the sale of the "government stake" and the share offering, RAO UES will hold at least 11.13% of TGC-6. These shares will be distributed among the minority shareholders in RAO "UES of Russia" after the Company's reorganization is completed.


* The decision to increase the authorized capital through issuance of 585 billion additional ordinary shares was approved by the EGM of TGC-6 held 14 December 2007. The share issue was registered with the FSFM of Russia on 24 January 2008.

This announcement is not for publication or distribution in the United States. This press release is not an offer of any securities of OAO "TGC-2" and OAO "TGC-6" for sale into the USA. No securities of OAO "TGC-2" and OAO "TGC-6" may be offered or sold in the United States unless they are registered under the US Securities Act of 1933 or are exempt from registration under the Securities Act. OAO "TGC-2" and OAO "TGC-6" have not registered and do not intend to register any of their securities in the United States or make a public offer of their securities in the United States.

This document does not constitute an invitation or inducement to engage in investment activity within the meaning of the UK Financial Services and Markets Act 2000. To the extent that this document induces to engage in investment activity, this announcement is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 or (iii) high net worth entities and other persons to whom it may otherwise lawfully be communicated, falling within Article 49(2) of the Order (all such persons together being referred to as "relevant persons"). The securities are available only to, and any invitation or offer may be directed at, or any agreement to subscribe for, purchase or otherwise acquire, any shares will be engaged in only with relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents.

In any EEA member state that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any member state, the "Prospectus Directive"), this announcement should not be construed as an invitation or inducement to engage in investment activity within the meaning of the Prospectus Directive. To the extent that this announcement induces to engage in investment activity, it is only addressed to and directed at persons in that member state who are qualified investors within the meaning of the Prospectus Directive (or who are other persons to whom the announcement may lawfully be addressed) and must not be acted on or relied on by other persons in that member state.

This announcement is not a public offer or advertisement of securities in the Russian Federation, and is not an offer, or an invitation to make offers, to purchase any securities in the Russian Federation.

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Contact Information:

Stas Degtyarev
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+7 (495) 710-6239

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