This document has been drafted by the Ministry of Economic Development.
Under the planned forecasts (programmes) of federal property privatisation in 2011-2013 and 2014-2016, approved by Government Directives No 2102-r of 27 November 2010 and No 1111-r of 1 July 2013, there are plans to end the Russian Federation’s stake in the statutory capital of the Inter RAO UES public energy company and to retain nine federally-owned shares.
Currently, the Russian Federation owns a 13.76% stake in Inter RAO UES. Moreover, 41% of corporate shares are owned by companies with state capital and state corporations, including the Federal Network Company of the Unified Energy System (FSK UES), the State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank) and Rushydro.
Moreover, nine Inter RAO UES shares accounting for 0.00000000000087% of all shares have been included in the list of strategic enterprises and strategic shareholding companies, approved by Presidential Executive Order No 1009 of 4 August 2004.
The dispersion of shares between several stockholders who are not long-term investors, as well as the different interests of stockholders, negatively affect the market quotes of corporate shares, due to the heightened risk of excessive supply. Therefore the creditworthiness of Inter RAO UES, as well as overall corporate capitalisation, may be impaired.
In this connection, efforts are being made to improve the structure of the shareholding capital of Inter RAO UES through direct sales of the federally owned share parcel to the Rosneftegaz company. Taking into consideration the dispersed structure of the shareholding capital of Inter RAO UES, the emergence of a stockholder with a blocking stake and a clear development strategy making it possible to generate synergy with his other businesses, the company will be more attractive for investors, and its capitalisation will also increase. This measure is in line with Presidential Executive Order No 695 of 22 May 2012 stating expressly that Rosneftegaz can invest in companies in the fuel and energy sector, whose share parcels are subject to privatisation.
According to a report, prepared by the independent appraiser, Financial Consultant Ltd, the market value of 13.76% of the shares of Inter RAO UES, minus nine shares, totaled 18,795,583,231 roubles. One equity/ordinary share therefore costs 0.01308 roubles. This report has been examined by the Society of Professional Experts and Appraisers, a non-government organisation of appraisers.
The privatisation of federally-owned shares of the shareholding company will make it possible to considerably increase the volume of federal budget revenues, and this will also create conditions for changing the corporate governance model.
