Russian electricity and heat generation company RAO UES has completed the first phase of its reorganization initiative by divesting two first generation companies, WGC-5 and TGC-5.
<p>As a result, WGC-5 and TGC-5 have become the first private generation companies in Russia created during the region's electric power sector reform.<br /><br />Before the spin-off, both of the companies successfully placed additional emissions of shares and attracted RUB12.28 billion and RUB11.63 billion, respectively. The companies' total capitalization tops RUB170 billion.<br /><br />As a result of the spin-off, for each ordinary share in RAO UES, shareholders will receive 0.41 of an ordinary share in WGC-5 and 13.59 ordinary shares in TGC-5. In addition, for each preferred share in RAO UES held, shareholders will receive 0.37 of an ordinary share in WGC-5 and 12.45 ordinary shares in TGC-5.<br /><br />As agreed with the registrars, WGC-5 and TGC-5 shares will be transferred into RAO UES's shareholders' accounts no later than September 7, 2007. <br /><br />The reorganization process will result in the liquidation of RAO UES and, according to Russian publication Prime-Tass, this is due to be completed on July 1, 2008.<br /></p>