Federal Grid Company FEES Board of Directors Approves New Share Issue

  Federal Grid Company (FEES) - Board of Directors Approves New Share Issue

RNS Number : 7649R
JSC Fed Grid Co of Unified Engy Sys
22 November 2012


Federal Grid Board of Directors Approves New Share Issue

Federal  Grid  Company  of  Unified  Energy  System  ("Federal  Grid"  or  the 
"Company", Moscow Exchange, LSE: FEES),  the operator and manager of  Russia's 
unified electricity  transmission grid  system, announces  that its  Board  of 
Directors has approved  an additional  share issue  of 8,164,069,983  ordinary 
shares with a  nominal value  of RUB 0.50  per share  for a total  sum of  RUB 
4,082,034,991.5.  The  planned  new  share  issue  represents  0.65%  of  the 
Company's current authorised capital.

In accordance with the Government of the Russian Federation's 2012 budget, the
Government will  purchase  RUB 3,247,305.2  thousand  of the  Company's  newly 
issued shares. The rest of the issue will be offered publicly on the  market. 
Existing shareholders  will have  a pre-emptive  right to  acquire the  newly 
issued stock proportional to their existing holdings in the Company. The list
of shareholders  having pre-emptive  rights will  be determined  based on  the 
shareholder register as of 19 November 2012.

The  placement  price  will  be  determinedin  accordance  with  the   Russian 
Federation Law on Joint Stock Companies by the Board of Directors, at a  price 
not lower than the nominal value of the newly-issued shares.

The proceeds from the placement will be used to fund Federal Grid's investment
programme. The Board of Directors approved the new share issue on 19 November



                       Investors / Analysts
Federal Grid IR team            Work                  Mobile
Alexander Duzhinov   +7 (495) 710 9064           +7 (916) 041 8053
Nadezda Sukhova      +7 (495) 710 9541
Egor Toropov         +7 (495) 710 9333 ext. 2275
Vladimir Baklanov    +7 (495) 710 9333 ext. 2926
                       International Media
Tom Blackwell        +7 (495) 663 8009           +7 (919) 102 9064
Sam VanDerlip        +44 20 7920 2356            +44 7554 993 032

About Federal Grid Company

Federal  Grid  Company  is  the  operator  and  manager  of  Russia's  unified 
electricity transmission  grid  system, including  high  voltage  transmission 
lines, and holds the status of a natural monopoly.

The Company's assets include  more than 124,000 km  of transmission lines  and 
854 substations with more  than 322 GVA of  35-750 volt transformer  capacity. 
Based on the length of transmission lines and installed transformer  capacity, 
Federal Grid is the largest  publicly traded electricity transmission  company 
in the world.

Federal  Grid's   business  is   to  provide   electricity  transmission   and 
technological connection services. It maintains  and develops the grid  system 
and supervises  grid  facilities and  infrastructure  in 73  Russian  regions, 
covering a  territory of  13.6 million  square kilometres.  Its customers  are 
regional distribution companies,  electricity suppliers  and large  industrial 

Since January 1^st 2010, Federal Grid  has operated under a 5-year  regulatory 
asset base (RAB) model.

The Company was  incorporated in June  2002 as part  of the reorganization  of 
Russia's electrical power  industry. The  largest shareholder,  with a  79.55% 
stake, is the Russian Federation Government.

Federal Grid  Company's ordinary  shares  are listed  on the  MICEX-RTS  stock 
exchange under the ticker symbol FEES and the Company's GDRs are traded on the
London Stock Exchange under the same FEES ticker symbol. The Company's  shares 
are included in the MSCI Emerging Markets and MSCI Russia indices.

In 2011 the Company's IFRS revenue was RUB 139,571 million (up 23% compared to
2010), adjusted EBITDA was RUB 83,760 million (a 24% increase from 2010),  and 
adjusted net profit was RUB 38,241 million (up 37% on 2010).

Further information can be found atwww.federal-grid.com

                     This information is provided by RNS
           The company news service from the London Stock Exchange


IOEFEMSWEFESEFF -0- Nov/22/2012 07:25 GMT
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