Moscow, 6 September 2007. A sale of stake, held by the Russian Federation in WGC-3* under the second reorganization balance sheet, is completed. The sale was approved by RAO "UES of Russia" Board of Directors at its meeting held on 27 April 2007.
Under the purchase and sale contract as of 23 August 2007, the stake was purchased by OAO "A.P.Zavenyagin Norilsk Mining and Metallurgical Combine". 5,252,409,064 ordinary shares, or 11% of the WGC-3 increased charter capital after the additional emission of shares placement**, were today transferred to OAO "A.P.Zavenyagin Norilsk Mining and Metallurgical Combine" account.
It was originally intended that the "government stake" would total 9,309,706,683 shares (19.7% of the increased charter capital). However, taking into account the results of redistribution of shares between OAO "State Holding", OAO "HydroWGC State Holding", and special holding companies approved by Board of Directors at its meeting held on 27 July 2007, the volume of the "government stake" was adjusted.
The price the shares were sold at was equal to that of additional emission placement – RUB4.54 per share. Holding of RAO "UES of Russia" in WGC-3 decreased from 37.1% to 26.02% as a result of the deal.
The proceeds from the deal will be received by interim OAO "State Holding" and OAO "HydroWGC State Holding" during RAO "UES of Russia" Parent Company reorganization. After these companies merger with the Federal Grid Company and the reorganization is completed, the proceeds will be allocated to finance priority investment projects in transmission grids and hydrogenation fields.
* WGC-3 was registered with the authorities on 23 November 2004. It combines six large power plants with total installed capacity of 8,497 MW: Kostromskaya, Pechorskaya, Cherepetskaya, Kharanorskaya, Gusinoozerskaya, and Yuzhnouralskaya GRES. The shares of WGC-3 underwent the listing procedure and were included in the Quotation List "B" on RTS (OGKC and OGKCG tickers) and MICEX (OGKC ticker).
** In March 2007, WGC-3 completed the first in Russia's electric power sector public placement of shares of a generation company to a strategic investor. The competitive negotiations to buy 18 billion ordinary shares (61% of the WGC-3 charter capital or 37.9% of the WGC-3 increased charter capital) were won by Norilsk Nickel Group. During the placement WGC-3 attracted USD3.1 billion. Holding of RAO "UES of Russia" in WGC-3 decreased from 37.1% as a result of the deal.
This announcement was disclosed as a notice of material facts in the Interfax newswire at 19:34 hours Moscow time on 6 September 2007 in compliance with the requirements of the Federal Service for Financial Markets of Russia.
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