The Board of JSC Inter RAO announces Annual General Meeting

The Board included 16 items on the AGM agenda, including but not limited to mandatory items stipulated by applicable laws, reduction of authorized capital, share consolidation, approval of the new edition of the corporate charter and related-party transactions, and determination of the number of authorized shares.

The Board also provided recommendations to shareholders on every item on the agenda. Specifically, the Board recommends to retain all 2013 net income because the company reported net loss according to Russian Accounting Standards, and not to pay dividends. The Board also recommends approving Ernst & Young LLC as the auditor of JSC Inter RAO.

The Board recommends that the shareholders reduce the authorized stock by retiring 997,683 shares, 293,339,674,800 rubles, and if such retirement is approved, also to convert each ordinary non-certificated share of the company with the face value of 0.02809767 rubles into an ordinary non-certificated share with the face value of 2.809767 rubles. These recommendations focus on improving the face value of shares (the retirement of shares would not change the market capitalization) and on making JSC Inter RAO more attractive for investment. JSC Inter RAO may become more attractive for investors if the Moscow Exchange lifts its restrictions (corporate shares are currently traded in batches of 100 thousand shares, which limits retail investors holding a number of shares that is not an exact multiple of this amount), and if the internal restrictions of certain foreign mutual funds applying to trades of securities with low market value no longer apply.

The Board also recommends that the shareholders reduce the authorized capital by 30 ordinary shares with the face value of 0.02809767 rubles to avoid creating fractional shares.