OREANDA-NEWS. February 26, 2008.  Representatives of Gazprom and the Siberian Coal Energy Company (SUEK) shareholders signed the Agreement fixing the major terms for SUEK to merger power and coal assets of both companies. The relevant decisions on the assets deal approval are taken by the Gazprom Board of Directors.

Pursuant to the Agreement, SUEK will issue additional shares to be fully placed in favor of Gazprom subsidiaries, which will own a 50 per cent plus one share stake in SUEK. Gazprom subsidiaries will pay for SUEK additional shares by shares in power utilities.

SUEK’s Board of Directors will comprise 11 members. It will consist of 5 representatives of Gazprom, 4 representatives of SUEK shareholders and 2 independent directors. The Board of Directors will be headed by a Gazprom representative, Vladimir Rashevsky will be the Director General.

The company’s shareholders will enter into an English law based agreement that will regulate their relations including the corporate management principles. Later on, the company is planning to hold an international IPO.

In the near future the parties will turn to the Russian Federation antimonopoly bodies for a permission to execute the transaction, which is planned to be completed before August 31, 2008.