OREANDA-NEWS. December 10, 2007. The Board of Directors of RAO UES of Russia approved additional issue of ordinary shares of JSC IDGC of the Center and indices of converting RGC shares into additional shares of JSC IDGC of the Center.

On November 30, 2007, the Board of Directors of RAO UES of Russia approved additional issue of 42, 118, 200, 000 ordinary shares of IDGC of the Center, and also indices of converting RGC shares into additional shares of JSC IDGC of the Center.

According to the resolution of the Board of Directors, the following parts of shares are converted into one ordinary share of JSC IDGC of the Center:

•   78000/738687280 part of the ordinary share of JSC Belgorodenergo at par value of 3800 rubles;
•   78000/676489811 part of the preferred class A share of JSC Belgorodenergo at the par value of 3800 rubles;
•  78000/18572663 part of the ordinary share of JSC Bryanskenergo at the par value of 10 rubles;
•  78000/17008845 part of the preferred class A share of JSC Bryanskenergo at par value of 10 rubles;
•  78000/7453771 part of the ordinary share of JSC Voronezhenergo at par value of 10 rubles;
• 78000/6826164 part of the preferred class A share of JSC Voronezhenergo at par value of 10 rubles;
•  78000/327431 part of the ordinary share of JSC Kostromaenergo at par value of 0.25 rubles;
•  78000/299862 part of the preferred class A share of JSC Kostromaenergo at par value of 0.25 rubles;
•  78000/212429 part of the ordinary share of JSC Kurskenergo at par value of 1 ruble;
•  78000/194542 part of the preferred class A share of JSC Kurskenergo at par value of 1 ruble;
•  78000/1798460 part of the ordinary share of JSC Lipetskenergo at par value of 1 ruble;
•  78000/542455 part of the ordinary share of JSC Orelenergo at par value of 3 rubles 50 kopecks;
•  78000/496780 part of the preferred class A share of JSC Orelenergo at par value of 3.5 rubles;
•  78000/918754 part of the ordinary share of JSC Smolenskenergo at par value of 1 ruble.
•  78000/841395 part of the preferred class A share of JSC Smolenskenergo at par value of 1 ruble;
•  78000/73076 ordinary shares of JSC Tambovenergo at par value of 1 ruble.
•  78000/66923 part of the preferred class A share of JSC Tambovenergo at par value of 1 ruble;
•  78000/371625 part of ordinary share of JSC Tverenergo at par value of 1 ruble.
•  78000/340334 part of the preferred class A share of JSC Tverenergo at par value of 1 ruble;
•  78000/13948314 part of ordinary share of JSC Yarenergo at par value of 50 rubles;
•  78000/12773866 part of the preferred class A share of JSC Yarenergo at par value of 50 rubles.

The board of directors also has recognized expedient to hold placement of additional shares of IDGC by means of the closed subscription in the event if the meetings of shareholders of certain DGC do not make the resolution on joining to IDGC. Paying-up of shares of the additional issues of IDGC will be carried out by RAO UES shares of those DGC (included in the configuration of the corresponding IDGC), which did not adopted resolution on reorganization.

In this connection, the Board of Directors of RAO UES of Russia approved indicators of issues of the additional shares of IDGC placed in case of non-adoption by any DGC general meeting of shareholders of the decision on reorganization in the form of joining to the company. In this case the amount of additional issue of IDGC of the Center will equal 21, 106, 473, 495 ordinary shares. 

Indicators and volumes of additional issues of IDGC, and also converting and exchange indices (in case of additional issue) were calculated proceeding from the uniform principles, on the basis of estimation of the market cost of shares of the companies participating in reorganization which was performed by the consortium of the appraisal companies in the structure of Ernest and Young Ltd Cost Consultation, JSC NP Consult, JSC International Valuation Center.

The Board of Directors of RAO UES of Russia approved the termination of participation of RAO UES of Russia in DGC forming a part of IDGC of the Center, IDGC of the Volga, IDGC of the Ural, IDGC of the Northern Caucasus and IDGC of the South, and also change of stake in the specified IDGC in case of joining of DGC or formation of holding companies on the basis of IDGC.
The Board of Directors charged representatives of RAO UES of Russia in the management bodies of IDGC and DGC to vote for adoption of all necessary decisions directed to finishing of formation of IDGC.

Formation of IDGC of the Center, IDGC of the Volga, IDGC of the Ural, IDGC of the Northern Caucasus and IDGC of the South is planned to be completed in the second quarter of 2008.