Gazprom and SUEK agree on major terms of power and coal assets merger
Representatives of Gazprom and Siberian Coal Energy Company (SUEK) shareholders signed the Agreement fixing the major terms of both companies’ power and coal assets merger. The Gazprom Board of Directors has taken the relevant decisions on the assets deal approval.
Pursuant to the Agreement, SUEK will issue additional shares to be fully placed in favor of Gazprom subsidiaries, which will own a 50 per cent plus one share stake in SUEK. Gazprom subsidiaries will pay for SUEK additional shares by shares in power utilities.
The new company’s Board of Directors will comprise 11 members. It will consist of 5 representatives of Gazprom, 4 representatives of SUEK shareholders and 2 independent directors. The Board of Directors will be headed by a Gazprom representative. Vladimir Rashevsky will be the Director General.
The company’s shareholders will enter into an English law based agreement that will regulate their relations including the corporate management principles. Later on, the company is planning to hold an international IPO.
In the near future the parties will turn to the Russian Federation antimonopoly bodies for a permission to execute the transaction, which is planned to be completed before August 31, 2008.
As planned, SUEK is to contribute power generation, coalmining and processing assets to the new company. Gazprom subsidiaries – targeted power assets owned by Gazprom in UES of Russia after its reorganization as well 15.61 per cent of the shares in OGK-2, 17.13 per cent in OGK-6, 5.27 per cent in OGK-5, and 5.00 per cent in TGK-5.
The total installed capacity of the company’s power generating facilities (stations of OGK-2, OGK-6, TGK-12, TGK-13) will average 25 thousand MW (nearly 30.5 thousand MW including participation in the Far East power system). The company’s share in the overall installed capacity of Russia’s power sector will amount to some 12 per cent (some 15 per cent – including the Far East power system). The proven and probable coal reserves of SUEK, Russia’s largest and one of the world’s largest producer of coal, are estimated at nearly 5.8 bln t.
Press Service of SUEK