OREANDA-NEWS. RAO "UES of Russia" announced a public auction to sell 49 percent shares in OAO "Kuban Energy Retail Company" scheduled for 21 May 2007. Bids will be accepted from 7 May to 18 May 2007.

The decision in principle on the divestiture by RAO "UES of Russia" of its shareholdings in the ERCs was taken by the Board of Directors on 8 December 2006. At its meeting held on 9 February 2007, the Board of Directors formed a list of 8 energy retail companies to be divested in the first place. Besides OAO "Kuban Energy retail Company", it includes OAO "Nizhny Novgorod Retail Company", OAO "Sverdlovenergosbyt", OAO "Orenburgenergosbyt", OAO "Kuzbass Energy Retail Company", OAO "Belgorod Retail Company", OAO "Vologda Retail Company", and OAO "Kolskaya Energy Retail Company". According to the auction announcement made on 10 April 2007, the auctions to sell the shares in the last 7 ERCs on the list will be held on 22 and 23 May 2007.

The auction reserve price for the stake in OAO "Kuban Energy retail Company" was set at RUB850 million taking into account the valuation report prepared by an independent appraiser. The price increment will be RUB50 million.

The auction will be arranged by OOO "Metropol Investment and Finance Company", an Accredited Agent of RAO "UES of Russia". Both Russian and foreign legal entities and natural persons are invited to take part in the auction. The highest bidder will be named the winner.