RAO UES Holds Auction to Sell Its Stake in Novgorod Energy Retail Co.
Moscow, 18 January 2008. Today, RAO "UES of Russia" held an auction to
sell its 49% stake in OAO "Novgorod Energy Retail Company". Bids for the auction
were accepted from 14 December to 17 January 2008.
The public auction was arranged by OAO "Urals Energy Management Company", an
Accredited Agent of RAO "UES of Russia", in accordance with the applicable
Russian laws and pursuant to the resolutions taken by the RAO UES Board of Directors on 31
The start price for the 49% stake in Novgorod Energy Retail Company was RUB120 million,
i.e. equal to the fair market value of determined by a consortium of independent
The stake in OAO 'Novgorod Energy Retail Company" has already been put up to
auction in November 2007, with the same start price, but the auction was unsuccessful.
The auction to sell 49% of Novgorod Retail Company was won by OAO
"CIT-Finans", which offered the highest price for the shares, RUB124.3 million.
The winning bid was RUB4.3 million higher than the auction start price.
There were two bidders for the stake in Novgorod Energy Retail Company.
Upon the completion of the auction, RAO "UES of Russia" and the auction
winner signed an Auction Memorandum and the Share Purchase Agreement in respect of the
shares in OAO "Novgorod Energy Retail Company" held by RAO UES.
The auctions to sell stakes in OAO "Kolskaya Energy Retail Company", OAO
"Astrakhan Energy retail Company", OAO "Bryansk Retail Company", OAO
"Komi Retail Company", OAO "Stavropolenergosbyt", OAO "Energosbyt
Rostovenergo", OAO "Kostroma Retail Company", and OAO "Oryol Retail
Company" were not held today, due to the lack of bidders.
As resolved by the Board of Directors of RAO "UES of Russia" on 30 November
2007, the stakes in ERCs which were not sold during the first rounds of auctions, will be
sold through the ISTRA information and trading system used to sell RAO UES assets.
The ISTRA system will be used to hold public auctions to sell the ERC stakes. Bids can
be submitted by investors who have access to the ISTRA system and a system participant's
electronic digital stamp.
Interested parties will be granted access to the ISTRA information and trading systems
on the same terms as those currently used by RAO UES for public auctions to sell the ERCs.
The peculiar feature of the ISTRA Information and Trading System is that after the
price of the unsold parcel of ERC shares is declared, the shares will be sold to the first
* The Board of Directors of RAO "UES of Russia" at its meeting of 8 December
2006 took a decision in principle to dispose of its stakes in ERCs.