RAO "UES of Russia" Publishes Results of TGC-10 Share Sale
Moscow, 28 February 2008. Today, RAO "UES of Russia" has reviewed the
bids for the 55.29% stake inTGC-10* owned by RAO "UES of Russia",
which is attributable to the government stake (without shares of additional emission**).
The highest bid was submitted by energy corporation Fortum: $4.62, or RUB111.8
per share. This price is approximately 18% higher than the market prices of TGC-10
shares (RUB94.37 per share, the MICEX closing price as of 27 February); which corresponds
to $767 per kilowatt of installed capacity.
The proceeds from the sale of this stake will amount to RUB28.6 billion, or more than
$1,180 million of private investments.
* On 1 December 2006 TGC-10 was formed as a single operation company. It comprises
generation and heat network assets of Tyumen Regional Generation Company, Chelyabinsk
Generation Company, and Kurgan Generation Company.
** The Board of Directors of RAO "UES of Russia" approved the additional
share offering of TGC-10 at its meeting of 26 October 2007. TGC-10 is entitled to issue up
to 633 million ordinary shares, RUB1.66 par value per share. On 31 August 2007 the Board
of Directors resolved that the sale of the "government stake" in TGC-10 will be
carried out simultaneously with the issuance of additional shares by TGC-10 at the same
price per share.