The RusHydro Group Acquires a Stake in the JSC Krasnoyarsk HPP
The RusHydro Group (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces that it has consolidated approximately 25% of shares of JSC Krasnoyarsk HPP. The deal was carried out through a swap of 4.53% of JSC RusHydro's shares from the balance of JSC Hydroinvest, a 100%-owned subsidiary of JSC RusHydro, without any cash contribution.
The acquisition is fully in line with RusHydro's Strategic Plan for development through 2015, which calls for: consolidating hydro-generation assets (including in regions in which the Group is present), consistent development of energy production based on renewable energy sources (RES), upgrading energy efficiency and providing for the safety and reliability of power plants.
Acquiring a stake in Russia's second largest hydro-power plant will create operational synergy between the capacity of the Krasnoyarsk HPP and the RusHydro Group, as well as increase profitability for RusHydro's retail business in the Krasnoyarsk Region due to more efficient cooperation between the Krasnoyarsk HPP and JSC Krasnoyarskenergosbyt (Krasnoyarsk Retail Supply Company).
Furthermore, the deal will enable the RusHydro Group to use an integrated approach to developing hydro-generation in Siberia, coordinating and implementing an integrated rehabilitation and modernization investment program. It will also allow implementation of an integrated program for system safety at all power plants of the Enisei Cascade (the Krasnoyarsk, Sayano-Shushenskaya and Mainskaya HPPs). The RusHydro Group sees this deal as the first stage of consolidation of hydro-generation in Russia.
Siberia is a strategic region for RusHydro. The Group owns and operates two of the three HPPs in the Enisei Cascade (the Sayano-Shushenskaya and Mainskaya HPPs); in addition, the Group is carrying out construction of the Boguchanskaya HPP. In 2008, the Group acquired more than 65% of the retail supply company JSC Krasnoyarskenergosbyt. Also, the Group is one of the largest taxpayers in the Krasnoyarsk Region and is a co-founder of the Corporation for the Development of the Krasnoyarsk Region PPP.
The Krasnoyarsk HPP is the second largest HPP in Russia in terms of installed capacity (6,000 MW), behind only the Sayano-Shushenskaya HPP. The HPP is the last of three stages in the Enisei Cascade. The average multi-year output for the HPP is 17.5 bln KWt*h. The HPP has 12 hydro-units with a capacity of 500 MW each.
JSC Krasnoyarskenergosbyt was established October 1st, 2005, in the course of reorganizing JSC Krasnoyarskenergo. Since 2008, it has been a part of JSC ESC RusHydro (a 100%-owned subsidiary of JSC RusHydro). JSC Krasnoyarskenergosbyt has been designated a guaranteed electricity supplier in the Krasnoyarsk Region. The Company services 26,629 legal entities and more than 950,000 individuals, in both urban and rural areas. This represents more than 90% of the Region's retail electricity market.
The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to RusHydro and its operations.
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