OREANDA-NEWS. June 20, 2011. Integrated Energy Systems plans to consolidate its generating and sales assets on the basis of OJSC TGC-9. This consolidation, another stage of the strategy to create a unified vertically integrated company, is scheduled for completion in the second quarter of 2012.

OJSC TGC-9 is expected to organize an additional share issue in the second half of 2011. Shareholders of IES-Holding's generating companies (OJSC TGC-5, OJSC TGC-6 and OJSC Volga TGC) will be able to swap their securities for additional shares of OJSC TGC-9. The offering price of TGC-9's additional shares will be determined by the Board of Directors of OJSC TGC-9 following completion of the validity term of the pre-emption right to additional shares of OJSC TGC-9.

The issue of increasing the equity capital will be considered by an annual general meeting of TGC-9's shareholders in June 2011. During 2011 a generating asset appraisal will be held in order to determine equity swap ratios.

OJSC TGC-9 is expected to become the largest shareholder of OJSC TGC-5, OJSC TGC-6 and OJSC Volga TGC following the results of the additional share issue. At the same time the legal status of subsidiaries participating in the consolidation will not change. 

OJSC TGC-9 is currently completing the consolidation of energy selling companies.

IES-Holding's asset consolidation on the basis of OJSC TGC-9 will make it possible to create a vertically integrated company, to introduce efficient international corporate governance standards and to establish objective prerequisites for liquidity growth of the consolidated company's securities.