Moscow, Russia- November 7, 2012 - Sistema JSFC ("Sistema") (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, today announces the completion of the reorganisation of its subsidiary OJSC Bashkirenergo ("Bashkirenergo").
In accordance with the previously announced agreement with OJSC INTER RAO UES ("INTER RAO UES") in May 2012, Bashkirenergo has been split into JSC Bashkirian Power Grid Company, which combines transmission and distribution grids, and OJSC Bashenergoactiv, which integrates power generation assets.
Upon completion of the reorganisation, Sistema-Invest obtained a 92.48%voting stake in Bashkirian Power Grid Company and received RUB 11.2 billion in cash and promissory notes from INTER RAO, payable in installments by September 29, 2013. Sistema no longer has any interest in the power generation assets.
Bashkirian Power Grid Company is a large regional company providing electricity transmission services between the central part of Russia and the Urals and power transmission and distribution services to end-consumers in the Republic of Bashkortostan. The company's assets include power transmission and distribution lines of 0.4 - 500 kV covering a total length 88,361 km, three substations of 500 kV, eleven substations of 220 kV, 245 substations of 110 kV, 330 substations of 35 kV and 22,294 transformers of 0.4/6/10 kV. The total installed transformer capacity of substations is 16,648.7 MWA. Bashkirenergo's transmission and distribution grid segment generated revenues of US$ 176 million in the first six months of 2012.