Actuality, November, 7, 2007

The shareholders of TGK-8 have bought out 30,1% of extra issue stocks by preemtive right.

The shareholders of OAO “SGK TGK-8” have bought out 206503212527 stocks of additional issue by preemtive right.
This fact is indicated in the report of SGK TGK-8. The board of directors has determined to offering of 685714285713 extra stocks. Thus, the shareholders have bought out 30,1% of extra issue by preemtive right.

As reported before, Gatecraft Ltd., operating on behalf of IFD “Kapital”, will buy extra issue stocks of General Company and state quota for $1,7 billion. The offering cost of one stock of state quota (492756605505 of securities) and additional issue totals RUR 0,035 for one stock.

Tender company of RAO “UES of Russia” decided to grant Gatecraft Ltd. an application to acquire state quota stocks of TGK-8 on October, 18, 2007. Participation share of RAO “UES of Russia” in TGK-8 will make 11% after the state quota sale and extra issue offering of this company. This stock interest will be distributed during the final reorganization of RAO “UES of Russia” among the minority shareholders of power engineering company.

The means which SGK TGK-8 will get from extra issue offering will be directed on realization of investment projects of generating powers development. In particular, by 2011 the company plans building of new blocks on Astrakhan SDPP, Astrakhan CHPP-2, Volga and Krasnodar CHPP. Also there are plans for reconstruction of operating power units, including some small HEPPs with a total power about 1100 MW. The means from the state quota stocks sale in TGK-8 will be directed to the realization of the HydroOGK investment project (according to the decision of the board of directors of RAO “UES of Russia” on July, 27, 2007).

Let’s remind that on August, 16, 2007 FFMS registered the additional issue of stocks of TGK-8 that were offered through public subscription. The issue includes 932371278802 equities at par RUR 0,01. It was appropriated the state registration number 1-01-34308-E-010D. On July, 6, 2007 the shareholders of SGK TGK-8 approved extra issue stocks for investments attraction in volume of RUR 24 billion. The initiators of extra issue offering were JPMorgan and IFC “Metropol”.

It is worth also to remind, that on April, 27, 2007 the board of directors of RAO “UES of Russia” approved the scheme of preparation and extra issue stocks offering of. The board of directors entrusted the representatives of RAO to support the definite size of extra issue of 932371278802 equities at par RUR 0,01 on the meeting of SGK TGK-8 shareholders. (78,4% of the authorized capital of SGK TGK-8 before the completion of company structure formation and not less than 40,2% of the authorized capital after extra issue offering).

OAO “SGK TGK-8” was incorporated on March, 22, 2005 in Astrakhan. The company united generating powers of the Astrakhan regional generating company, the Volga generating company, the Rostov generating company, the Dagestan thermal generating company, the the Stavropol generating company, which on June, 1, 2006 joined TGK-8 and turned over single stock. Fixed electric power of company is over 3600 MW, thermal one is 16 thousands of Gcal. Basic shareholders of company are RAO “UES of Russia” (50,01%), ZAO “Energostrategy” (15,81%) and ZAO “Promregion holding” (16,28%).

Net profit of OAO “SGK TGK-8” on RAS in 1Q 2007 reduced by 38,3%, from RUR 232,8 million ($9,312 million) to RUR 143,7 million ($5,748 millio). Profit totaled RUR 8,944 billion ($357,76 million), that by 15% higher than last year’s index in RUR 7,8 billion ($312million).