OREANDA-NEWS. The Board of Directors of RAO "UES of Russia" approved holding an auction to sell at least 25 percent plus 1 share in OAO "WGC-5", subject to approval of WGC-5 reorganization by the shareholder meeting of OAO "WGC-5".

The Board decided that the most expedient and efficient option from the viewpoint of maximizing the sale price would be holding a general shareholder meeting of WGC-5 to approve its reorganization, and then holding a public auction to sell at least 25 percent plus 1 share in WGC-5 held by RAO "UES of Russia".

It is planned that in August-September 2007, OAO "WGC-5" will be reorganized through the merger of OAO "WGC-5 Holding" with and into WGC-5.

Such course of action will enable RAO "UES of Russia" to transfer its shares in OAO "WGC-5" to the buyer immediately after the auction, which is likely to have a positive effect on the ultimate purchase price.

Moreover, auction participants will take their investment decisions being aware that the spin-off of OAO "WGC-5" from RAO "UES of Russia" has already been approved by the company's shareholders, which will contribute to extra favourable conditions for entering into the transaction.