RAO UES Completes DR Holder Survey
OREANDA-NEWS. July 30, 2008. As of the books closed date, 6 July 2008, about 6% of RAO UES shares were traded as Depositary Receipts under the following programs, reported the press-centre of RAO UES:
Program Depositary Bank % of RAO UES Capital
Reg S GDR The Bank of New York 5.3
Level 1 ADR (common) Deutsche Bank Trust Company Americas 0.52
Level 1 ADR (preferred) Deutsche Bank Trust Company Americas 0.18
Under the applicable laws, the DR holders were asked to elect a form in which they wish to receive assets of the companies spun off from RAO "UES of Russia", i.e. shares, DRs representing shares in the RAO UES successor companies or proceeds from the sale of spin-off energy companies' shares they are entitled to.
During the period up to 7 July 2008, the RAO UES depositary banks (Deutsche Bank Trust Company and The Bank of New York) and the clearing and settlement providers (Euroclear, Clearstream, DTC) reviewed the Election Packages containing information about the election made by DR holders in respect of each company spun off from RAO "UES of Russia".
However, the above possibilities are limited for certain spin off companies*.
According to the depositary banks, the Election Packages were received from more than 90 percent of the Company's DR holders.
Most DR holders elected to receive local shares in the spin-off companies. This option was elected by 59 percent of RAO UES DR holders, except for the following:
OAO "SGC TGC-8", 83 percent of all RAO UES DRs;
RAO "Energy Systems of the East", about 83 percent;
OAO "IDC Holding", about 78 percent;
OAO "INTER RAO UES", about 38 percent;
OAO "UES FGC", about 37 percent;
OAO "RusHydro" – about 32 percent.
The stakes to be sold by the depositary banks (if a DR holder of RAO "UES of Russia" expressly elected to receive proceeds from the sale of the spin-off shares they are entitled to or failed to submit the Election Packages in due time) made about 13-14 percent of the stake held by the Company's DR holders. The only exception was OAO "Yeniseyskaya TGC" with 21.5 percent.
Holders of about 27 percent of RAO UES DRs elected to take new DRs of most of the spin-off energy companies, except for OAO "RusHydro" (about 55 percent), OAO "Inter RAO (about 49 percent), OAO "FGC UES" (about 49 percent), OAO "Yeniseyskaya TGC" (about 19 percent), OAO "IDC Holding" (about 9 percent), OAO "TGC-10" (about 4 percent), and RAO "Energy Systems of the East" (about 4 percent).
According to the depositary banks, process is currently underway to allocate shares and DRs representing the shares in the companies which launched their respective DR programes.
RAO UES DR holders are expected to receive shares and DRs of most spin-off energy companies by the end of July 2008. Shares in the energy companies established on 1 July 2008 (OAO "IDC Holding" and OAO "RAO Energy Systems of the East") will be received by foreign investors in November 2008, and DRs representing shares in these companies will be received in January 2009. This is due to the statutory periods set for the listing and other procedures of such companies.
The process to sell the spin-off companies' shares distributable to the RAO UES DR holders who elected against receiving the shares or failed to submit their Election Packages may take three to six months.
* Specifically, there will be no DRs of OAO "SGC TGC-8", as the company decided against establishing a Depositary Receipts program. Because of that, the company's DR holders may only receive shares in OAO "SGC TGC-8" or proceeds from the sale of these shares.
Also, RAO UES ADR and GDR holders will not be able to receive DRs and shares in OAO "TGC-11" due to the fact that the spin off company (OAO "TGC-11 Holding") did not complete its merger with and into OAO "TGC-11". In this case, RAO UES ADR and GDR holders will receive the proceeds from shares they are entitled to.
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