OREANDA-NEWS. December 14, 2007. The press conference, on which the plans on establishing a unified operational company were announced, was held on December 11, Belgorodenergo's press service reported. Attending the conference were Evgeny Makarov, the General Director of JSC "IDGC of the Center", Konstantin Kotikov, Deputy General Director for Corporate Management, Irina Lisitsyna, Director of Investment and Bank Services of FC "Otkrytie", Oleg Afanasiev, Head of Shared Financing Group of Raiffeisen Bank, as well as regional and federal journalists.

The decision on establishment of interregional distribution grid companies in a new configuration was adopted on April 27, 2007 at the RAO "UES of Russia" Board of Directors. Previously, the Company was called JSC "IDGC of the Center and North Caucasus" and was composed out of 22 regions. Starting July 1, 11 regional distribution grid companies (DGC) compose JSC "IDGC of the Center", including JSC "Belgorodenergo". The Company state registration was held on August 6, 2007. The Extraordinary Meetings of Shareholders, at which the decisions on company restructuring in the form of takeover to JSC "IDGC of the Center", will be held in January.

The formation of JSC "IDGC of the Center" target structure will be accomplished in April of the next year by taking over of 11 DGCs and transferring to a single item issue. The record in Unified Sate Register of Legal Entities will be added about DGC discontinuation of activities due to takeover to IDGC. JSC "Belgorodenergo" along with 10 distribution grid companies will loose the status of an independent company (legal entity) and will allot to JSC "IDGC of the Center" as an affiliate. The unified operational company will be established with the assets cost of 30 bln rubles. The General Director of JSC "IDGC of the Center" said, that the company was always transparent about its activity. "We are also transparent in all items, concerning restructuring," said Evgeny Makarov.

Konstantin Kotikov, Deputy General Director for Corporate Management said, at the moment the main stages of restructuring were accomplished. The fundamental conditions of the take over are determined, the company shares are estimated in order to set their market value, the DGC shares swap ration to JSC "IDGC of the Center" shares was determined, as well as their redemption value. DGC shares were estimated by the independent appraisers consortium headed by Ernst and Young – cost consulting Ltd with the participation of investment banks FC "Otkrytie" and Raiffeisen Bank. The experts acknowledged both the company assets size, and assets management. According to monitoring results, the major capitalization share in JSC "IDGC of the Center" structure is owned by JSC "Belgorodenergo" exceeds 25%. JSC "Voronezhenergo" is at the second place (16,6%).

Mr. Makarov, said, that JSC "IDGC of the Center" is becoming a major company, which will continue its active, operational, production activity in the regions: "You should not think that we transfer power to the center. It is wrong and has no reason. The Company control system, which is presented by regional committees on state price and tariffs control, will remain the same. There are no significant changes in financing and tax deduction. From the other side, the major company is becoming more attractive for shareholders and investors, it has huge possibilities to enlarge number of finance sources of promissory notes. These will allow us to develop more efficiently, and not to stop economic development of the regions."

When the restructuring is over, JSC "IDGC of the Center" priority will be the incensement of capitalization level and growth of securities cost. It is expected that in the nearest future the capitalization index will increase by 50%.