INTER RAO UES Group completes consolidation of its Russian generation assets

Minority shareholders of JSC OGK-1 and JSC OGK-3 converted their stock into additionally issued common shares of JSC INTER RAO UES. All transactions with securities of JSC OGK-1 and JSC OGK-3 in the shareholder registry were ceased as of September 28, 2012.

Along with the reorganization INTER RAO UES fulfilled all its obligations to minority shareholders and bought out stock from all the shareholders of the mentioned companies who voted against the reorganization or abstained from voting. The redemption payment totaled RUB 11.7 bn. As the result, authorized capital of JSC INTER RAO UES will increase by 6.8% and the free float is to grow from 16% up to 18%. State and state-run companies will keep control of the company’s capital as their share will total 55%.

“Due to the reorganization we have significantly simplified and streamlined the ownership structure of our core assets," said Ilnar MIRSIYAPOV, Member of Executive Team and Head of Strategy and Investments Business Unit, JSC INTER RAO UES. "Consolidating 100% stakes in generation companies will help us maximize financial synergies from streamlined fuel costs management, centralized purchasing and unified sales strategy. All these factors as well as increased liquidity and free float will ultimately make INTER RAO UES Group an even more attractive investment."