Moscow, 19 September 2007. Today, public auctions were held to sell the shares in energy retail companies owned by RAO "UES of Russia".
The auctions were arranged by the Accredited Agent of RAO "UES of Russia", OAO "Urals Energy Management Company". The bids were accepted from 3 September through 14 September 2007.
The following stakes were put up for sale were as follows: 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).
The reserve prices equal to the market value of the shareholdings were determined based on the report prepared by a consortium of independent appraisers.
Results of Auctions
1. The 100% stake in OAO "Kareila Energy Retail Company" was acquired by OOO "Transneftservis S" for RUB 350 million.
2. The 49.01% stake in OAO "Voronezh Energy Retail Company" was acquired by OOO "KT Proekt Investment Company" for RUB300 million.
3. The 49% stake in OAO "Tver Energy Retail Company" was sold to OOO "Khronos" for RUB550 million.
Upon completion of the auctions, RAO "UES of Russia" and the auction winners signed auction protocols and the Share Purchase Agreements in respect of the shares in the energy retail companies.
The auctions to sell shares in OAO "Bryansk Retail Company", OAO "Udmurt Energy Retail Company" and OAO "Komi Energy Retail Company" were not held as the auction participants failed to confirm the reserve price.
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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. The next auction of the second round to sell 48.66% shares in OAO "Astrakhan Energy Retail Company" with the reserve price of RUB350 million is scheduled for 5 October.
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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