OREANDA-NEWS. April 28, 2010. The decision made the BoD will put pressure on quotes for Inter RAO stock valuations, as the emission price approved is 30% below the current quotes for Inter RAO shares.

Inter RAO has set the placement price for an additional share issue at RUB 0.0402 per share. The placement of additional shares is to kick off on April 28, 2010. The issue consists of 1.6 trillion common shares, at 70.357% of the company’s current share capital. The shares will be placed with VEB, the Federal Agency for State Property Management (Rosimushchestvo) and State Atomic Energy Corporation (Rosatom) on a closed subscription basis. The pre-emptive right to buy the shares will be granted to shareholders that voted against an increase in the share capital or were absent from the voting at an AGM of shareholders on June 25, 2009.

Given that the price approved by the board is below the weighted average price for Inter RAO shares of RUB 0.046 for the past six months and accordingly, falls short of the current stock valuations. In the wake of the placement, VEB will take an equity position in Inter RAO capital, while Rosatom will likely see its stake diluted. However, no tangible impact on the company’s alignment of forces is expected from the forthcoming changes in its share capital structure. The company will see its free float decrease after placing the issue by closed subscription, which may adversely affect its corporate governance standards over time.