INTER RAO UES Group acquires Bashkir power generation assets

Pursuant to the agreement signed by JSFC Sistema and JSC INTER RAO UES in May 2012, and to the resolution of Bashkirenergo’s EGM, the company was reorganized through a disproportionate split into the following two entities: JSC Bashkir Grid Company (the operator of grid assets of JSC Bashkirenergo) and JSC Bashenergoaktiv (the operator of power generation and other assets of JSC Bashkirenergo with exception of its grid assets). The latter merged with JSC INTER RAO UES simultaneously with the split. INTER RAO UES Group acquired 100 % interest in the power generation assets of Bashkirenergo Group through this transaction.

Shares belonging to minority shareholders of JSC Bashkirenergo were converted into newly issued shares of JSC INTER RAO UES.

As per the earlier offers to sell common and preferred stock, JSC INTER RAO UES bought out 175,887,683 common shares (16.09% of the authorized capital) of Bashkirenergo through the voluntary offer, and 10,545,333 preferred shares (0.96% of the authorized capital) through the public offer. In addition to that, JSC Bashkirenergo bought out 3,713,423 common shares (0.34% of the authorized capital) and 2,206,178 preferred shares (0.2% of the authorized capital) through a mandatory buyout from shareholders who didn’t vote or voted against the reorganization of the company.

“INTER RAO UES Group completed the reorganization of Baskhirenergo’s power generation assets, JSC OGK-1 and JSC OGK-3, and now operates more than 32,000 MW of installed capacity. By the end of the year, we will complete the transition to our desired model of power generation management in Russia, which is 100 % ownership of all the Group’ generation assets,” said Boris KOVALCHUK, CEO of JSC INTER RAO UES. “We’re following our development strategy focused on creating shareholder value, securing leadership in the Russian energy industry, and increasing transparency of share ownership”.