Moscow, 30 July 2008. OJSC INTER RAO UES finalized the acquisition of 49% of Moldovskaya GRES shares from Hungarian company EMFESZ, thereby consolidating 100% shares of the power plant. In accordance with the deal structure, the control over 49% of CJSC Moldavskaya GRES was acquired through acquisition of 100% shares of FREECOM TRADING LIMITED (Cyprus). The transaction value was USD 163 million. OJSC INTER RAO UES plans to use the borrowed funds as a financing source.
The increased share of OJSC INTER RAO UES in the capital of CJSC Moldavskaya GRES fully meets the General provisions of the Company’s strategy. Consolidation of key assets is performed by OJSC INTER RAO UES with the purpose of increasing its efficiency of managing its subsidiaries and increasing the Company’s value. It is planned that starting 2010 the total capacity of the hydroelectric power plant will be 1,500 MW on average.
One of the most important strategic aspects of this transaction is the interest of the large European electric power companies in the acquisition of CJSC Moldavskaya GRES. The acquisition of 49% shares of CJSC Moldavskaya GRES by OJSC INTER RAO UES enables, as a result of the complex investment program, to involve in mid-term perspective the aforesaid companies in the share capital of CJSC Moldovskaya GRES.
The development strategy of OJSC INTER RAO UES is based on the substantial potential for future expansion into electric power markets of Eastern Europe and opportunities to set up exports of electric power generated at Moldavskaya GRES to Romania, Belarus and Ukraine. In accordance with the business plan of CJSC Moldavskaya GRES, in 2008 the total supplies to Romania to the passive island are planned to be around 900 million kWh. Starting 2009, it is planned to launch in-sync supplies of electricity with UCTE, which would enable to sell electric power generated by CJSC Moldavskaya GRES on the free market sector of Romania’s electricity market.