Inter RAO Group and PJSC FGC UES signed a purchase agreement for 7.0% of PJSC Inter RAO shares held by PJSC FGC UES (hereinafter, FGC UES). The cost of deal is RUB24.5 billion. The buyers on the side of Inter RAO Group are represented by JSC Inter RAO Capital (6.33%) and LLC Praktika (0.67%).
Though the consolidation of the package of its own shares, Inter RAO PJSC will be able to optimize the structure of its shareholder capital, increase the weight of anchor strategic shareholders with a clear vision for the Group's development, which historically supported the business of Inter RAO Group and helped achieve a synergy for the majority of business directions. The increased amount of shares will also help improve the current corporate management level through supporting the election of independent members to the Board of Directors of Inter RAO.
According to the Group Development Strategy until 2020, the shares can be sold to a large international strategic investor or a group of financial investors with the potential increase of free floating shares, or for other transactions aimed at enhancing the investment attractiveness.
FGC UES became the shareholder of Inter RAO in 2011 after acquiring 15.12% of shares through exchanging their participation interests in a number of generating assets for the shares of OJSC Inter RAO UES. The deal was settled as part of the additional issue of shares of OJSC Inter RAO UES conducted for consolidating the company's energy assets. Moreover, after the additional issue, LLC Index Energetiki FGC UES a 100% subsidiary company of PJSC FGC UES, acquired the share of 4.49% of the charter capital of OJSC Inter RAO UES. In December 2017, FGC UES consolidated 18.57% of the shares of Inter RAO on its books. Inter RAO is a strategic partner of FGC UES in enabling, amongst others, the transit of electric energy in the Russian Federation and abroad. Therefore, the joint decision was made on preserving the long-term participation of FGC UES in the shareholder capital of Inter RAO.
"The completed transaction is a highly efficient investment by the Group," noted Boris KOVALCHUK, Chairman of the Company's Management Board. "Within the next few years Inter RAO Group will focus increasing its business efficiency through upgrading the operating energy units, improving efficiency of the power supply and heat sectors. That gives us every reason to talk positively about the Group's capability of increasing its capitalization."
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Inter RAO Group is a diversified energy holding serving various segments of Russian and international electric power industry. The Group is the leading exporter and importer of electricity in Russia actively increasing electricity generation and sales, and developing new lines of business.
The corporate strategy of Inter RAO is focused on making Inter RAO a global energy enterprise, a key player in the global energy market, and Russia's leading electric utility by energy efficiency. Inter RAO Group owns and operates approximately 33.5 GW of installed power generation capacity.