Mikhail Alefirenko, analyst of Pharos Financial Group

– Consolidation of Atomenergoprom’s assets is underway despite the problems our economy is experiencing for the moment

The Federal Financial Markets Service has registered the report on results of issue of additional shares of Atomenergoprom OJSC. The shares have been placed by closed subscription in favor of the state in the framework of the second stage of the consolidation of Atomenergoprom’s assets. A total of 440,722,037 ordinary shares worth 1,000 RUR each have been placed. The shares of 41 federal state unitary enterprises reorganized into joint stock companies have been given to Atomenergoprom in the framework of the second stage of the consolidation, among them Energoatom Concern OJSC (formerly Rosenergoatom Concern FSUE). 14 more FSUEs, whose corporization is near completion, will be incorporated into the holding in 2009. For this purpose, Atomenergoprom will carry out one more additional issue. The total amount of the two additional issues will total 500bln RUR (500,000,000 shares each worth 1,000 RUR). Before the placement of the additional shares the authorized capital of Atomenergoprom totaled 3.4bln RUR – 3,400,000 shares of 31 nuclear joint stock companies given to the holding in the framework of the first stage of the consolidation. 100% of the shares of Atomenergoprom OJSC belong to Rosatom State Nuclear Energy Corporation.

The consolidation of Atomenergoprom’s assets is underway despite the problems our economy is experiencing for the moment. The consolidation of nuclear assets into one complex will give Atomenergoprom easier access to credits. Of course, a bigger company is more attractive for investors than disintegrated holdings are. And the more transparent Atomenergoprom’s structure is the more attractive it will be. Such consolidation will help the holding to form a effective price, financial and sales policies, to save on prices, to integrate its technologies and to get a number of other big advantages.