Lenenergo might raise 5.6 bln rubles with share issue
ST. PETERSBURG. May 7 (Interfax) - The board of directors of OJSC Lenenergo has recommended that shareholders vote at their annual general meeting on June 20 to increase charter capital with a new share offering, the Russian power grid company said in a statement.
The company plans to place 926,876,304 common shares with par value of 1 ruble at a price of 6.06 rubles each, including for shareholders exercising preemptive rights. The share offering could therefore raise 5.617 billion rubles.
The company said the proceeds would be used to finance its investment program.
The shares can be paid for with cash, as well as assets, including shares in power distribution companies in St. Petersburg and the Leningrad Region, and power grid infrastructure.
The board of directors of Lenenergo's majority shareholder, Russian Grids (formerly IDGC Holding) decided earlier to instruct the group's representatives to put the issue of raising charter capital on the agenda of Lenenergo's AGM.
Russian Grids is prepared to pay for its participation in the new share issue with up to 3 billion rubles received from the federal budget.