JSC Geotherm acquires geothermal assets
Since December 25, 2009, JSC Pauzhetskaya Geothermal Power Plant (Pauzhetskaya GeoPP) has been a 100 % subsidiary of JSC Geotherm after successful implementation of the transactions provided for under the plan of geothermal asset consolidation on the basis of JSC Geotherm and approved by JSC RusHydro, JSC RAO Energy Systems of the East (RAO ESV), and the Energy Ministry of Russia.
Within the framework of consolidating geothermal assets, the energy company Geotherm also acquired 36.61 % of the shares of JSC Verkhne-Mutnovskaya Pilot GeoPP to increase its stake in the company's authorized capital to 47.77 %, and the motorway between the settlement of Termalny and the Mutnovskaya GeoPP. Both assets earlier belonged to JSC Kamchatskenergo. As a result of these transactions, mutual overdue claims between JSC Geotherm and JSC Kamchatskenergo were settled.
The sources for asset acquisition: overdue liabilities of JSC Kamchatskenergo to JSC Geotherm; promissory notes of JSC Geotherm.
The asset consolidation effort is aimed at building a single center for managing the Kamchatka geothermal assets and ensuring the innovative development of this line of business.
A qualitatively new impetus will be given to implementation of the technical upgrading program at the Pauzhetskaya GeoPP. The company will focus on the strict fulfillment of the JSC RusHydro investment program aimed at increasing generating capacity through the installment of a new binary power unit.
Shares / ADR