OREANDA-NEWS. On November 30, 2007 the Board of Directors approved adjustments to the technique for the IPO and sale of shares in OAO "Volzhskaya TGC", reported the press-centre of RAO "UES of Russia".

On 25 May, the Board approved the offering of additional shares of Volzhskaya TGC, and on 31 August approved the sale of the "government stake" shares in the GenCo owned by RAO "UES of Russia"

The terms of the additional share offering previously approved by the Board of Directors and the terms of the share sale have not changed.

Volzhskaya TGC is authorized to issue up to 3,859,000,000 shares, which makes 14,78 percent of the company's capital before the offering and 12,87 percent of the capital after the offering). The company expects to raise RUB15 billion as a result of the transaction.

RAO "UES of Russia" will put up for sale its 36,93 percent stake of the capital before the offering, or 9,645,676,916 ordinary shares of the shares attributable to the "government stake".

The adjustments only affect the technique to be used for the share sale and offering. Initially, these processes were planned to occur concurrently. Now it has been decided that they will be separated in time: first the company will carry out its IPO, and then it will sell the "government stake" shares. Such separation in time will help maximize the proceeds from the IPO and share sale.

The additional shares are expected to be offered through open subscription to portfolio investors in about Q1 2008, and the "government stake" shares will be sold in Q2 2008 through a competitive process. The per share price at which the "government stake" shares will be sold will not be lower than the IPO price.

The Board approved the reduction in the Company's interest in OAO "Volzhskaya TGC" from 54.47 percent to at least 15.28 percent after the sale of the "government stake" shares.