RAO UES Names the Best Bidder for the Government Stake in
Moscow, 16 May 2008. The Tender Commission of RAO "UES of
Russia" has completed acceptance of bids for the "government stake" shares
in OAO "Volzhskaya TGC" held by RAO "UES of Russia".
Upon review of the bids, the Tender Commission accepted the only bid
for the Volzhskaya TGC stake submitted by Berezville Investment Limited.
Berezville offered RUB2.848 per ordinary share in Volzhskaya TGC,
or US$520 per kW of installed capacity (based on the USD/RUB exchange rate set by the
Central Bank of Russia as at 15 May 2008).
As a result of sale of the "government stake", RAO UES is to
raise about RUB27.5 billion in funds, or more than $1.152 million. The proceeds from the
sale of the "government stake" shares in TGC-7 will be used to finance the
investment programme of Federal Grid Company.
After the sale of the "government stake", RAO UES will hold
15.28% of Volzhskaya TGC. These shares will be distributed among the RAO UES minority
shareholders during the final phase of the Company's reorganization.
To date, additional share offerings have been completed at 17 WGCs and
TGCs. These are WGC-2, WGC-3, WGC-4, WGC-5, WGC-6, TGC-1, TGC-2, Mosenergo (TGC-3), TGC-5,
Volzhskaya TGC (TGC-7), SGC TGC-8, TGC-9, TGC-10, Kuzbassenergo (TGC-12), and Yeniseyskaya
TGC (TGC-13). The total amount of funds raised through the share offerings made RUB442.63
billion. These funds will be used to finance the generation companies' investment
Another RUB360.85 billion in private investments was raised as a
result of sale of the "government stake" shares in 13 generation
companies—WGC-3, WGC-4, TGC-1, TGC-2, Mosenergo (TGC-3), TGC-4, TGC-6, SGC TGC-8, TGC-9
TGC-10, TGC-11, and Yeniseyskaya TGC (TGC-13) as well as the "blocking stake" in
WGC-5. The proceeds from the sale of "government stake" shares will be used to
finance the investment programmes of FGC and HydroWGC.
Thus, taking into account the sale of the "government stake"
in Volzhskaya TGC, the total amount of funds raised from private investors for the Russian
electricity sector through the issuance and sale of shares in WGCs and TGCs will reach
nearly RUB831 billion.