OREANDA-NEWS. October 19, 2007. OJSC “Territorial Generating Company № 5” Board of Directors has approved of the acquisition of 500 shares of CJSC “Vyatkatorf” with nominal value 1 thousand rubles (100% of CJSC “Vyatkatorf” authorized capital stock).

CJSC “Vyatkatorf” 100% share holding acquisition expense won’t exceed 350 million rubles.

The acquisition deal is to be made as soon as TGC-5 has received the approval of FAS of Russia, which is expected to take place in the middle of October, 2007.

According to TGC-5 Director General Eduard Smelov, the acquisition of “Vyatkatorf” will give a stimulus to the company’s new projects. Among them there can be the construction of additional peat-burning generating facilities both on the territory of TGC-5 responsibility zone and beyond it.

Information: in the Kirov region 1 734 peat fields have been discovered. Their total area is 279,9 thousand hectares. Assured peat resources in the Kirov region equal to 380 million tons. CJSC “Vyatkatorf” peat reserves are about 154 million tons of conventional humidity peat. At present some working projects meant for 10 million tons of peat reserve are being carried out.

According to the data provided by the non-commercial partnership “The peat society of the Russian Federation” in 2005 CJSC “Vyatkatorf” was the largest peat producer among the thirty working peat enterprises of Russia. And in the year 2006 “Vyatkatorf” preserved its leading position among Russian peat-producing enterprises. 40 per cent of Russian peat is produced on the territory of the Kirov region.

Major peat consumers are TGC-5 (CHPP-3, CHPP-4), municipal boiler houses in the districts of the region, TGC-2 (Sharynskaya CHPP, the Kostroma region). To meet the buyers’ demand peat is also supplied for agricultural purposes.

ОJSC "Теrritorial Generating Company  №5" was registered on 22 March  2005, having in its structure 11 CHPPs in the republics of Chuvashia and Udmurtia, Kirov region and the republic of Mari El. The company's installed electrical capacity is 2,467.3 MW and its thermal capacity is 9,040 Gcal/hr. The number of employees is over 5, 000. The General Director of OJSC “TGC-5” is Eduard Yurievich Smelov. The Chairman of OJSC “TGC-5” Board of Directors is Vladimir Albertovich Lebedev. On 31 March 2006, OJSC “TGC-5” was the first generating company in Russia to complete forming its target structure. The charter capital of ОJSC "ТGC-5" is 12 302 537 786 rbl. 06 cop. OJSC "ТGC-5" shares have been admitted to be traded on OJSC "RTS" since 17 July 2006 (out of list), on CJSC “MICEX” since 18 July 2006, and since 20 July 2006 – in the auction system of NP RTS. The shares of TGC-5 underwent the procedure of listing on NP RTS on 10 November 2006 and on MICEX on 15 November 2006.