Publication date: 09.02.07
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RAO UESR BOARD OF DIRECTORS DEFINES PARAMETERS FOR ADDITIONAL ISSUE OF OGK-4 SHARES

At its today's meeting, the Board of Directors of RAO UES of Russia defined the parameters for the additional issue of shares in Generation Company Four of the Wholesale Market of Power and Energy (OGK-4).

 

This issue was addressed by the RAO UESR Board of Directors in accordance with its previous decision of August 30, 2006, regarding approving the increase in the OGK-4 authorized capital with the purpose of raising funds to finance the implementation of the Company's Investment Program. The RAO UESR Management Board was then instructed to submit for the Board of Directors' approval specified proposals for the number of authorized OGK-4 shares to be placed.

 

At its today's meeting, the Board of Directors instructed the RAO UESR representatives at the OGK-4 General Meeting of Shareholders to approve the limit of authorized ordinary shares in OGK-4 as 23 billion shares with a par value to be determined in accordance with Paragraph 4.2 of the Articles of Association of OGK-4. The Board of Directors approved the change in RAO UESR's equity interest in OGK-4, associated with the change in the size of the Company's authorized capital: from 89.6% to at least 61%.

 

It is planned to place additional shares in OGK-4 by public subscription with subsequent payment in cash. The offering price will be defined by the Board of Directors of OGK-4 upon the expiry of the term of preemptive rights. As the principal shareholder, RAO UES of Russia will not exercise its preemptive rights in relation to the additional OGK-4 shares. In the process of placing the additional OGK-4 shares, some of RAO UESR's shares in OGK-4 may be sold if the RAO UESR Board of Directors specifically makes a decision on such sale.

 

OGK-4 plans to use the funds to the raised for the implementation of several investment projects related to the construction new generating facilities at the Company's power plants. Specifically, it is planned to construct PGU-400 based CCGT power units at Shaturskaya TPP and Yaivinskaya TPP. Two PGU-400 power units with a total capacity of 800 MW are expected to be built at Surgutskaya TPP-2. In addition, the Company intends to complete the construction of an 800 MW steam power unit at Berezovskaya TPP.

 

The information contained in this press release is not meant for publication or distribution in or into Australia, Canada, Japan, or the United States of America

 

This press release is not meant for publication or distribution in or into the United States. This press release is not an offer for sale of any OGK-4 securities in the United States. OGK-4 securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. OGK-4 securities have not been and will not be registered in the United States, and will not be publicly offered in the United States.

This press release does not constitute an invitation or inducement to engage in investment activity for the purposes of the Financial Services and Markets Act 2000 of the United Kingdom. Inasmuch as this press release motivates toward investment activity, it is directed only at (i) persons who are outside the United Kingdom, or (ii) persons who are investment professionals for the purposes of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 of the United Kingdom ("The Order"), or (iii) companies with a high value of assets and other persons to whom this document may be communicated and who meet the requirements of Articles 49(2) of the Order (all such persons are jointly referred to as "relevant persons"). The securities may be purchased by, and any invitation or proposal may be addressed to, and any agreement for subscription to the shares, purchase of the shares, or acquisition of the shares in any other way may be entered into with the relevant persons only. This document or its contents must not be relied on by any other persons who are not the relevant persons.

In any European Economic Area member state that has implemented Directive 2000/71/EC (together with any applicable implementing measures in any member state, the Prospectus Directive), this press release must not be considered to be an invitation or inducement to engage in investment activity for the purposes of the Prospectus Directive. Inasmuch as this press release motivates toward investment activity, it is directed only at investment professionals for the purposes of the Prospectus Directive in such member state and other person to whom this document may be lawfully communicated. This press release or its contents must not be relied on by any other persons who are not the relevant persons.

This press release is not a public offering or an advertisement of any securities in the Russian Federation and it is not an offer or an invitation to submit any bids or to buy any securities in the Russian Federation.