RusHydro Group concludes acquisition of the Hydroproject Institute
October 21st, 2010. Moscow, Russia. RusHydro Group (ticker symbols: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) purchased 100% of the shares of JSC "Designing, Surveying and Research Institute ▒Hydroproject,' named after S.Y. Zhuk" from the ESN Group. The shares were purchased by RusHydro's 100%-owned subsidiary JSC Gidroinvest for cash.
The transaction was performed as part of the Company's implementation of the "Strategic Plan for Corporate Development till 2015," which calls for the development of design and research complex, as well as for the consolidation of the Company's research and engineering assets.
Acquiring one of Russia's largest research centers will ensure that innovations are introduced during the design of RusHydro's power plants and other key projects. The acquisition will also help create a one-of-a-kind design and engineering complex; in addition, it will allow the Company to maximize orders for designing and developing modern infrastructure projects.
"Hydroproject has unique human resources, has completed advanced research work in project design and engineering, has a recognizable brand (both domestically and abroad) and has extensive experience working with foreign customers," stated George Rizhinashvili, Deputy Chairman of JSC RusHydro's Management Board. "Adding Hydroproject to the RusHydro family will expand the Company's international order portfolio and will also help spur new activity in international markets."
"Designing and Research Institute ▒Hydroproject,' named after S.Y. Zhuk", is the Russian leader in designing hydro-power and general purpose hydro-facilities. The Institute is headquartered in Moscow and has branches in other Russian cities. Since its founding in 1930, the Institute, its predecessors and branches have constructed more than 250 HPPs with a total installed capacity of 65 GW (including 45 GW in Russia) and annual power output of 230 billion kWh (including 170 billion kWh in Russia). Outside the borders of the former Soviet Union, Hydroproject has built facilities such as the high-altitude Aswan Dam. 2009 revenue stood at RUR 1,499 million, net profit - RUR 218 million.
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