OREANDA-NEWS. RAO "UES of Russia" held an auction to sell its 25,03 percent stake in OAO "WGC-5". 

The public auction was arranged by the Company's Accredited Agent, OAO "Alfa-Bank", in accordance with the applicable laws of the Russian Federation and the resolution of the Board of Directors of RAO "UES of Russia" of 9 February 2007, with OAO "Alfa-Bank" and Merrill Lynch International acting as the seller's financial advisors. Bids were accepted from 27 March to 28 May 2007.

The reserve price was equal to the fair market value of RUB24,658 billion determined based on the report prepared by an independent appraiser. The bid increment was RUB200 million, with the first increment making RUB342 million.

Both Russian and foreign strategic investors expressed their interest in taking part in the auction. Among the auction participants were E.ON Russia Power GmbH, Enel Investment Holding B.V., Rusal Energy Limited, and OAO "NOVATEK".

The shareholding was sold to Enel Investment Holding B.V., which made the best bid of RUB39,2 billion.

The auction price was nearly 60 percent higher than the reserve price.

After the auction, RAO "UES of Russia" and Enel Investment Holding B.V., the auction winner, signed the Auction Protocol and the Share Purchase Agreement in respect of the 25.03 percent shares in OAO "WGC-5". According to the auction terms, the winner will become an owner of the shares after the deal is approved by the Russian Federal Antimonopoly Service and the bidder makes full payment of the shares within 50 calendar days of the execution date of the Share Purchase Agreement.