OREANDA-NEWS. On March 29, 2007 RAO "UES of Russia" held a public auction to sell 93,35% shares of OAO "Yuzhno-Kuzbasskaya TPP"* held by RAO "UES of Russia", OAO "Kuzbassenergo", and OAO "SIBENCO" (SUEK), reported the press-centre of  RAO "UES of Russia". The public auction was arranged by the Accredited Agent, ZAO "United Financial Group", in accordance with the applicable Russian laws and the resolution of RAO UES Board of 23 December 2005. Bids were accepted from 1 March through 23 March 2007. The reserve price was equal to the fair market value of RUB4 billion determined by an independent appraiser.

The shares were sold to the highest bidder, OOO "MECHEL-ENERGO", which offered RUB6,9 billion. The auction price of USD513 per kW of installed capacity was 1,7 times higher than the reserve price. After the auction, a share purchase agreement was signed with the auction winner, OOO "MECHEL-ENERGO". Under the auction terms, the winner will become the owner of the shares if the deal is cleared by Russia's Federal Antimonopoly Service, and after it makes an offer to purchase shares from the plant's minority shareholders and pays the transaction amount in full. Such payment must be made no later than 14 calendar days of the execution date.