The first phase of the consolidation and reorganisation of Russian federal hydropower holding Hydro OGK has been completed with 20 subsidiaries and dependent companies merging with the parent group.
Hydro OGK is now the largest power generator in Russia in terms of installed capacity, which is 23.3GW. The company itself, though, is a subsidiary of the federal energy holding RAO UES of Russia, which repurchased Hydro OGK’s shares in late December for re-issue to markets as part of the consolidation process.
Those subsidiaries and dependent companies that were consolidated into Hydro OGK ceased to be legally separate entities, and either this month or in February will be the formal registration of the share exchanges undertaken as part of the change of ownership and control.
As part of the consolidation process, the necessary increase in Hydro OGK shares for issue to holders of stock in the subsidiaries and dependent companies was registered in late December 2007.
By the middle of this year the group is due to be restructured to hold new subsidiaries.
Earlier last month, the international credit ratings agencies Standard & Poor’s (S&P) and Fitch issued ‘BBB-‘ ratings on Hydro OGK, citing sound finances and the strategic importance of the business to the Russian Federation. The rating is investment grade.