The Committee for Competitive Negotiations of Generation Company Four of the Wholesale Market of Power and Energy (WGC-4) has decided to recommend that the Board of Directors of the Company should approve a Consortium of UBS Advisory Services and Troika Dialog as an investment banker providing services related to the placement of an additional issue of WGC-4 shares.
Applications to participate in the competitive negotiations were accepted by WGC-4 from August 8 to August 22, 2006. The competitive negotiations were held from August 23 to August 25. Fifteen Russian and foreign investment companies and banks, some of which participated in the negotiations as part of consortiums, submitted their applications.
It is expected that the WGC-4 Board of Directors will consider the selection of the Consortium of UBS Advisory Services and Troika Dialog as investment banker providing consulting services related to the placement of the additional issue of WGC-4 shares on August 31, 2006. The additional issue of WGC-4 shares will be on the agenda of the August 30, 2006, meeting of the Board of Directors of RAO UES of Russia.
WGC-4 intends to use the funds to be raised through the additional issue of WGC-4 shares for the implementation of investment projects related to the construction of the following generating facilities at four TPPs that are part of the Company: CCP-800 at Surgutskaya TPP-2, CCP-400 at Shaturskaya TPP and Yaivinskaya TPP, and SPP-800 at Berezovskaya TPP.