RAO ES of the East's BoD Approves Divestment of Far-Eastern Distribution Grid Company for RUR 19.3 bln
JSC RusHydro (ticker symbol: MICEX, LSE: HYDR; OTCQX: RSHYY) announces that the Board of Directors of RAO ES of the East (RusHydro Group) at a meeting held January 23rd, 2012 approved divestment of Far-Eastern Distribution Grid Company (DRSK) by Far-Eastern Energy Company (DEK) to JSC Federal Grid Company.
The decision was made to comply with Russian Government Resolution #1174 (dated July 7th, 2011), authorizing the Russian Ministry of Energy and the Federal Agency for State Property Management to integrate RAO ES of the East's distribution grid assets into Federal Grid Company.
The Board of Directors approved the sale of 910,333,199,800 ordinary shares for a total of RUR 19.3 bln to Federal Grid Company.
The proceeds from the share sale will be used to finance RAO ES of the East's investment projects; in particular, construction of the Ussuriyskaya combined heat and power plant (CHPP), the first unit of the Yakutskaya GRES, the CHPP located in Sovetskaya Gavan and the second unit of the Blagoveschenskaya CHPP.
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