RAO UES Strategy Committee Approves Initial Selling Price of WGC-5 Blocking Stake at RUR 24.7 Billion
24-01-2007RBC
The Strategy and Reform Committee of RAO UES of Russia approved today the initial selling price of 25.03% shares of OJSC The Fifth Generation Company of the Wholesale Power Market (WGC-5) amounting to RUR 24.7 billion, a participant in the committee"s meeting informed RBC. The blocking stake will be sold as a single lot at an auction 180 days after WGC-5 held its additional issue in November, 2006.
Proceeds of disposal of the WGC-5 blocking stake in the amount of RUR 24.7 billion less transaction taxes and costs of the auction are to go to FGC. RAO UES management intends to use the margin between the initial price and the final amount of the transaction as a reserve for reorganization purposes. Once the 25.03% interest in WGC-5 has been sold and it has been spun off from the energy holding company, the state will receive a blocking stake in WGC-5.
