OREANDA-NEWS. On November 29, 2007 RAO "UES of Russia" held public auctions to sell its stakes in the energy retail companies (OAO "Khakasenergosbyt" and OAO "Udmurt Energy Retail Company"). Auction bids were accepted from 1 November to 28 November 2007, reported the press-centre of RAO "UES of Russia".

The public auctions were arranged by OAO "Urals Energy Management Company", an Accredited Agent of RAO "UES of Russia", in accordance with the applicable Russian laws and pursuant to the resolutions taken by the RAO UES Board of Directors on 31 August 2007.

The start prices for the shareholdings in the ERCs equal to the market value determined based on the report prepared by a consortium of independent appraisers were as follows:

100 percent stake in OAO "Khakasenergosbyt": RUB230 million.

49 percent stake in OAO "Udmurt Energy Retail Company": RUB500 million.

OAO "Khakasenergosbyt" and OAO "Udmurt Energy Retail Company" were put up to auction in September 2007 with the same start prices, but the stakes were not sold.

In order to improve efficiency of the retail assets divestiture, RAO "UES of Russia" has changed the procedure for holding the third series of auctions to sell energy retail companies' shares. Under the new Auction Regulations, auctions now use a sealed bidding procedure. During an auction, the bidders are to submit their bids, which must not be lower that the reserve price, in sealed envelopes to the Auction Commission.

The envelopes will be opened by members of the Auction Commission in the presence of all auction participants. The shares will be sold to the highest bidder.
 
Auction Results:
The 100 percent stake in OAO "Khakasenergo" was sold to OAO "Roscommunenergo", which offered RUB232 million for the stake. The winning bid was RUB2 million higher than the auction start price. There were three bidders for the stake in OAO "Khakasenergosbyt".

The 49 percent stake in OAO "Udmurt Energy Retail Company" was sold to OOO "Peresvet", which offered RUB515,515 million for the shares. The auction price exceeding the start price by RUB15,515 million. There were two bidders for the stake in Udmurt Energy Retail Company.

After the auction, RAO "UES of Russia" and the auction winners signed auction minutes and Share Purchase Agreements in respect of the ERC shares previously held by RAO UES.

The auctions to sell stakes in OAO "Energosbyt Rostovenergo", OAO "Stavropolenergosbyt", OAO "Astrakhan Energy retail Company", OAO "Bryansk Retail Company", and OAO "Komi Retail Company" were not held today. In September 2007, public auction to sell the stakes in these companies were unsuccessful.