13 Aug 2010 12:27

FFMS registers FGC

MOSCOW. Aug 13 (Interfax) - Russia's Federal Financial Markets Service (FFMS) has registered an additional share issue for OJSC Federal Grid Company worth 14.14 billion rubles at face value.

The FFMS said in a statement that the company plans to place 28,288,776,589 shares in open subscription at a face value of 0.5 rubles each.

The total issue will come to 14,144,388,294.5 rubles. The issue received state registration number 1-01-65018-D-102D.

Share placement is planned to begin in September, and the government is expected to buy up 11.189 billion rubles worth of shares - these monies earmarked in the Russian budget for input into FGC share capital.

FGC minority shareholders will acquire additional shares to the tune of up to 2.955 billion rubles as they exercise preemptive buying rights. Shareholders who were on the register as of June 28 - the day the board of directors decided to issue the shares - will be entitled to exercise preemptive rights.

The placement will be 2.29% of existing FGC share capital, which now stands at 1,233,561,333,552 shares with par value of half a ruble.

FGC will put the proceeds from the additional issue towards its investment program, which in 2010-2012 carries a 519 billion-ruble price tag. The company plans to invest roughly 900 billion rubles in 2010-2014 in all.

In 2009, FGC also placed additional shares to receive funds from the budget. The company placed 54.64% of the additional issue for a little over 40 billion rubles of an overall issue volume of 73.25 billion rubles. The bulk of it - 40.17 billion rubles worth - was picked up by the government. The budget funds received were put into building grid facilities in the Far East and in the Sochi region in preparations for the 2014 Olympics to be held there.

FGC was set up during RAO UES of Russia's reorganization. The state-controlled company manages Russia's national power-grid assets.