14 Dec 2009 13:02

OGK-3 plans to sell 1.05% of treasury stock in CiG for 725 mln rubles

MOSCOW. Dec 14 (Interfax) - OJSC OGK- 3 plans to close the sale of 1.05% of treasury stock in OOO CIG Broker, which is part of Centerinvest Group, for 725 million rubles.

OGK-3 told Interfax that the transaction should be recorded on its books on December 14.

On December 1, OGK-3's board of directors approved the sale of a portion of the treasury stock in CiG. The genco will sell 500 million shares (1.05% of charter capital). According to protocol for the board's meeting, which has been seen by Interfax, the price for the sale was based on the average weighted value of shares on the previous trading day. The shares will be sold for 1.45 rubles each.

CiG declined to comment on the transaction with OGK-3

The group provided investment and financial services. At the end of 2008 as the economic crisis was hitting, CiG experienced difficulties in areas such as its broker business. Clients presented complaints regarding the withdrawal of funds from the company's accounts and the sale of the company's brokerage business was even discussed. According the group's materials, the main shareholders are CiG's management with 30% and Chairman of United Russia, Gleb Fetisov, with just less than 20%.

In October, OGK-3's general director, Vladimir Kolmogorov, said that the company plans to decide on the sale of treasury stock over several months. On OGK-3's balance sheet are 4.14% of the shares. The genco purchased them in 2008 from shareholders in disagreement with the company's reorganization. The purchase price then came to 4.042 rubles per share.

OGK-3 did not specify when a decision would be made to sell the remaining treasury stock (3.09%) with CiG. In addition, the company has yet to set the possible timing for the sale of other assets, the shares in which OGK-3 should sell by decision of the Audit Chamber of Russia. The funds received will be earmarked for investment projects.

OGK-3 could sell 25% minus one share in RUSIA Petroleum , 35% in Plug Power and 100% in OOO T-invest. The genco purchased these assets in 2008 from Interros and MMC Norilsk Nickel for 16.15% with funds received from an additional share issue. The Audit Chamber declared in April these transactions as an unworkable use of funds since the money from the share issue was supposed to go toward financing the genco's investment program. By the end of 2009, OGK-3 was to hold negotiations with the sellers for buyback but did not receive an answer.

OGK-3 said that its management is currently looking for buyers for Plug Power. However, the genco has yet to make final decisions for the sale of this and other assets.

MMC Norilsk Nickel owns 65% of shares in OGK-3. The genco includes the Kostromskaya, Pechorskaya, Cherepetskaya, Kharanorskaya, Gusinoozerskaya and Yuzhnouralskaya district electricity stations (GRES) with 8,500 megawatts of installed capacity.