OREANDA-NEWS. On May 23, 2007 RAO "UES of Russia" held a public auction to sell its 49 percent stake in OAO "Belgorod Energy Retail Company" and OAO "Vologda Energy Retail Company". Bids were accepted from 16 April to 22 May 2007, reported the press-centre of  RAO "UES of Russia".

The public auction was arranged by OAO "Urals Energy Management Company", an Accredited Agent of RAO "UES of Russia", in accordance with the applicable Russian laws and pursuant to the resolutions of the Board of Directors of RAO "UES of Russia" of 9 February 2007 and Procurement Commission of the Project Center for Pre-sale Preparation and Disposal of Assets of RAO "UES of Russia" of 23 March 2007.

The auction reserve price for the stake in OAO "Belgorod Energy Retail Company" and OAO "Vologda Energy Retail Company" was set at RUB250 million taking into account the valuation report prepared by a consortium of independent appraisers, with a price increment of RUB10 million.

There were 5 nominees participating in the contest.

Results of the auction:

The winner of the auction to sell a 49% stake in OAO "Belgorod Retail Company" is OAO "CIT" that offered the highest price, RUB920 million for the shares. The price offered during the auction was almost 4 times higher than the auction start price.

The winner of the auction to sell a 49% stake in OAO "Vologda Retail Company" is OAO "Roskommunenergo" that offered RUB250 million for the shares.

Upon completion of the auction, the winners will sign auction results protocols and Agreements to buy retail company shares held by RAO "UES of Russia".

Auction to sell a 49,2% stake in OAO "Kolskaya Energy Retail Company" was not held, because no bids had been submitted on this lot. According to the auction rules at least two bids must be submitted on each lot.