FGC-Rosseti co could use treasury stock for exchange with minority shareholders - Rosseti CEO

VLADIVOSTOK. Sept 12 (Interfax) - The company created following the merger of Federal Grid Company (FGC UES) and Rosseti could use the treasury stock formed as a result of the deal for exchange with Rosseti Center minority shareholders, Rosseti CEO Andrei Ryumin said in an interview with Interfax.

"Decisions will be made by the board of directors. Treasury stock could be used for various goals, including for consolidation. In particular, for exchange with minority shareholders," Ryumin said.

The holding is not restricted in the timeframe for ownership of treasury stock, and it can be held by the group of companies for more than a year, he said.

It would also be incorrect to sell this stock at the moment, as Rosseti and FGC stock values are currently at a minimum in light of external factors, Ryumin said.

"One strategy is to hold the treasury stock, wait for stock values to grow, and then sell it. The company would thus receive additional profit. But as I've already said, it can also be considered a tool for consolidation, for exchange," he said.

According to the terms of the merger between FGC and Rosseti announced earlier, the state's share in the new company will be no less than 75% plus one share. The company will also have treasury stock of around 5% of charter capital.