June 05, Moscow, Russia.
PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY)
announces conclusion of the asset swap transaction between RusHydro
Group and Far East Energy Company’s (PJSC DEK( minority
shareholders including JSC SUEK.
The swap deal of Luchegorsky coal mine and its
technically connected Primorskaya GRES, RusHydro’s non-core assets,
for minority shareholders’ 41.98% stake in the share capital of
PJSC DEK, a company which owns Far Eastern Generating Company (DGK)
and Far Eastern Power Distribution Network (DRSK), has been approved
earlier by RusHydro's Board of Directors and Federal Antimonopoly
service of the Russian Federation.
Reduction of DGK’s leverage by conversion of its
loans before RusHydro into the share capital of DGK was among the
goals of the transaction. Following the asset swap, the power
generating company’s financial health will improve as its RUB 40 bn
debt will be capitalized and its leverage will consequently decrease
by 50%.
Nikolay Shulginov, Chairman of the Management
Board – General Director of RusHydro commented: “This deal along
with introduction of economically viable long term tariffs in the
non-price zones of the Far East will greatly improve DGK’s
financial performance allowing the company to focus on its operations
and modernization to ultimately improve reliability of power supply”.
Stepan Solzhenitsyn, General Director of JSC SUEK
added on behalf of minority shareholders: “SUEK is regarded by many
in Primorye and in the Far East in general as a local company. We are
actively investing in production development, including coal-powered
electricity generation, and contributing to quality of life
improvement in the cities of presence. We are sure the deal will have
a positive effect on further development of the region.”
PJSC RusHydro’s share in DEK and, consequently,
DRSK increased to 94.1%. DGK now owns three new power plants in
region: Blagoveshenskaya CHPP (2nd phase), Vostochnaya
CHPP and CHPP in the city of Sovetskaya Gavan. Tariff revenue from
the power plants will be an additional source of financing of DGK’s
operations.
Upon commencement of the deal, minority
shareholders withdrew from DEK and acquired Luchegorsky coal mine and
Primorskaya GRES.
| 
.jpg){kind=small}
