Matvey Taits, analyst of Uralsib

– Consolidation of the assets of the nuclear industry will result in the formation of a big player

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.

By obtaining more assets Atomenergoprom OJSC will be able to improve its positions on the capital market and to finance large-scale investment projects. This consolidation will result in the formation of a big player and will reduce the risks of investors and the cost of attracted capital.