OREANDA-NEWS. On March 15, 2007 RAO "UES of Russia" held a public auction to sell 93,35% shares of OAO "Zapadno-Sibirskaya CHPP"* held by RAO "UES of Russia", OAO "Kuzbassenergo", and OAO "SIBENCO" (SUEK).
The reserve price at the auction was equal to the fair market value of RUB5.7 billion determined by an independent appraiser, reported the press-service of RAO "UES of Russia".
The public auction was arranged by an Accredited Agent, ZAO "United Financial Group", in accordance with the applicable Russian laws and the RAO UES Board resolution of 23 December 2005. Bids were accepted from 9 January through 5 March 2007.
The shares were sold to OOO "InvestEnergoProekt", which offered RUB5,95 billion.
According to Vladimir Avetisyan, member of the Management Board of RAO "UES of Russia", the price of the Zapadno-Sibirskaya CHPP based on the auction results is USD407 per kW of installed capacity. The station does not own any heating networks (the value of such networks, for ease of comparison, makes on average about 20% of a TGC's capitalization). Taking this into consideration, the power plant's price per kilowatt of installed capacity is in line with the average market price of similar TGC assets, highlighted Avetisyan.
After the auction, RAO "UES of Russia" and OOO "InvestEnergoProekt", the auction winner, signed an auction protocol and a agreement to purchase 93,35% shares of OAO "Zapadno-Sibirskaya CHPP" from RAO "UES of Russia", OAO "Kuzbassenergo", and OAO "SIBENCO".
Under the auction terms, the winner will become the owner of the shares after the deal is approved the Russian Federal Antimonopoly Service, the bidder makes a tender offer for the shares*** and makes full payment for the shares within 14 calendar days of the contract date.