Moscow, 18 September 2007. Today, RAO "UES of Russia" held a public auction to sell its 49% stake in OAO "Kurgan Energy Retail Company".
The auction winner, OOO "ANTAL Trading Firm", purchased the shares at the reserve price of RUB80 million.
The reserve price of the shareholding of Kurgan Energy Retail Company equal to the market value was determined based on the report prepared by a consortium of independent appraisers.
The public auction was arranged by the Company's Accredited Agent, OAO "Urals Energy Management Company". Bids were accepted from 3 September through 14 September 2007.
After the auction, RAO "UES of Russia" and the auction winner signed the Auction Protocol and the Agreement for the Purchase of the shares in the energy retail company.
The auctions to sell the 48.4% stake in OAO "Energosbyt Rostovenergo", 55.13% of OAO "Stavropolenergosbyt, and 100% of OAO "Khakasenergosbyt" were not held today due to the second participant failing to appear at the auction, as under the auction rules, the auction should have at least two participants.
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* 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. The Board then resolved that the principal method to be used for the disposal of ERC shares would be sale through a public auction, with the reserve price not lower than the fair market value determined by an independent appraiser.
At the meetings of 27 April and 31 August 2007, the Board of Directors of RAO "UES of Russia" determined the energy retail companies whose shares are to be sold during the second round of public auctions. In addition to the ERC shareholdings put up for auction today, tomorrow, on 19 September, auctions will be held to sell 49% of OAO "Bryansk Retail Company" with the reserve price of RUB375 million; 49.01% of OAO "Voronezh Energy Retail Company" (RUB300 million); 100% of OAO "Karelia Energy Retail Company" (RUB350 million); 50.11% of OAO "Komi Energy Retail Company" (RUB375 million ); 49% of OAO "Tver Energy Retail Company" (RUB550 million); 49% of OAO "Udmurt Energy Retail Company" (RUB500 million). On 5 October, an auction will be held to sell 48.66% of OAO "Astrakhan Energy Retail Company" with the reserve price of RUB350 million.
The third round of auctions to sell ERC shares is scheduled for November 2007, the fourth round for March 2008, and the fifth round is expected to be held in May 2008.
The ERC sale will significantly increase the number of independent energy retailers employing advanced methods of retailing, expand the range and improve the quality of services provided by them owing to the growing market competition among the retailers.
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