OREANDA-NEWS. May 16, 2012. Sistema JSFC ("Sistema") (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, announces that it has signed an agreement with OJSC INTER RAO UES ("INTER RAO UES") regarding the terms of the reorganisation of OJSC Bashkirenergo ("Bashkirenergo"). Sistema Group presently owns 50.53% and INTER RAO UES owns 25.08% of the voting shares of Bashkirenergo, reported the press-centre of Sistema.

The decisions regarding the reorganisation of Bashkirenergo will be submitted for approval at Extraordinary General Meetings of Sistema and Bashkirenergo shareholders, which are scheduled for June 2012. If approved by the EGMs and if various additional conditions can be met (including receipt of necessary government approvals, execution of additional agreements, and other conditions), the deal is expected to be completed by the last quarter of 2012 or first quarter of 2013 after all reorganisation procedures have taken place.

Mikhail Shamolin, President and Chief Executive Officer of Sistema, commented: "The reorganisation of Bashkirenergo is in line with Sistema's strategy to develop its energy assets. It represents an effective monetisation of Sistema's stake in Bashkirenergo's power generation assets and removes various legislative limitations for the further development of our power grid business."