13 Aug 2009 19:25

RusHydro satisfies investors' demand for 7.5 bln rubles in additional shares

MOSCOW. Aug 13 (Interfax) - Russian hydrogenerating company RusHydro has satisfied investors' bids for the purchase of 7.5 billion rubles in additional shares as part of the company's supplementary issue for a total of 16 billion rubles, RusHydro said in a statement.

Investors submitted more than 150 offers exceeding 13 billion rubles for the additional shares.

Of the satisfied bids, about 3.5 billion additional shares have been distributed among large investment banks and funds in addition to individuals. Preference was given to investors who have invested in the past in hydropower plants that ended up becoming part of RusHydro. In some cases, investors who already owned a stake in RusHydro boosted their interest further. RusHydro employees and pensioners in addition to former hydropower plant workers accounted for a significant number of individuals who submitted bids for the shares.

OJSC Hydroinvest, a wholly owned subsidiary of RusHydro, acquired the remaining roughly 4 billion shares. Hydroinvest took part in the additional share issue to maintain the government's stake in RusHydro at its current level following the placement. Hydroinvest is expected to place these shares on the stock market at a higher price once the market picks up.

RusHydro stopped taking offers for the new shares on August 10.

The company placed 16 billion shares with par value of one ruble in a public subscription. The Federal Financial Markets Service registered the issue on May 14. The company placed the shares to raise investment.

The government used its preemptive right to take part in the placement, acquiring 4.923 billion shares with federal budget funds. The deadline for submitting bids using the preemptive right was July 2.

RusHydro shareholders acquired a total of 7.2 billion additional shares using their preemptive rights. Thus, the company placed 8.8 billion shares in a public subscription.

The board of directors decided earlier that the company would only place 7.5 billion additional shares so that the government could retain the 60.37% stake it received in RusHydro's charter capital following the reorganization of RAO UES.

RusHydro unites more than 25 gigawatts of hydrogenerating capacity. The company has charter capital of 255.014 billion common shares with par value of one ruble. The government owns a 61.93% stake in the company, while more than 30% of its shares are in free float.