OREANDA-NEWS. April 12, 2010. RAO Energy System of East has shed light on the far-eastern energy system restructure dates. The news should elicit a positive response from investors, but is unlikely to have a huge impact on company stock valuations.

The restructure of the far-eastern energy system, with the regional companies merging into a single share with RAO Eastern Energy System (RTS: VRAO), is to be completed in 2 years, a spokesperson for ES of East said. Supposedly, after the restructure, all far-eastern utilities within RAO ES of East’s zone of responsibility, i.e. Yakutskenergo (RTS: YAEN), Magadanenergo (RTS: MAGE), Kamchatskenergo (RTS: KCHE), Sakhalinenergo (RTS: SLEN) and FEEC (RTS: DVEC), will trade under the single ticker with RAO Eastern Energy System. The restructure is to facilitate the inflow of investments into the holding’s development projects. After a corresponding decision is approved by company BoD, RAO ES of East is to hire a consultant to value the companies involved in the process.

RAO announced the plan to merge into a single share with its affiliates last year, but was uncertain on the dates of the procedure. The sector consolidation should open up new investment opportunities for the united company, help optimize expenses and improve share liquidity. However, since the company is to finish the procedure only in two years and has not disclosed any further details, we do not expect the news to have any notable impact on RAO ES of East stock valuations.