OREANDA-NEWS. On December 14, 2007 Board of Directors of RAO "UES of Russia" has approved the report on the results of shareholder requests for share buyback, reported the press-centre of RAO "UES of Russia".

To have rights for buyback, a shareholder should have met two requirements: to have an entry in the RAO UES shareholder register as of 23 August 2007 and vote against the proposed final reorganization of RAO UES at EGM on 26 October 2007 or abstain from voting. The deadline for buyback requests was 10 December 2007.

Under the Federal Law On Joint-Stock Companies, in terms of money the legal maximum volume of shares for buyback is up to 10 percent of a company's net asset value as of the last record date before the decision on the reorganization. In RAO UES case, the sum totals RUB101852.9 million. 2,829,893,970 ordinary shares and 409,603,422 preferred shares with aggregate value of RUB103039.8 million were requested for buyback.

Since the amount of funds required for buyback exceeds 10 percent of RAO UES net asset value, RAO UES Board of Directors approved an index of 0,988480997670* to determine the number of shares that RAO UES buys back from shareholders. Therefore RAO UES will buy back 2,797,296,335 of 2,829,893,970 ordinary shares and 404,885,193 of 409,603,422 preferred shares.

The shares will be bought back at a market price approved by RAO UES Board of Directors, set on the basis of Deloitte&Touche, an independent appraiser, report: RUB32.15 per ordinary share and RUB29.44 per preferred share.

Under the Federal Law, RAO UES is to buy back shares during 30 days from the deadline date to request buyback, i.e. till 9 January 2008.

* The index was calculated by a formula NAV 10% / ((ORD*32.15) + (PREF*29,44)) where:
NAV 10% – 10 percent of RAO UES net asset value as of 26 October 2007;
ORD – Number of ordinary shares requested for buyback;
PREF – Number of preferred shares requested for buyback.