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Annual report 2012

Social report 2012

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Share Issues in 2012

In 2012, the Company completed the placement of its additionally issued shares, raising 15,115,492 thousand rubles, including 9,381,787 thousand rubles of federal budget funds for the purposes of its further allocation to finance various projects in different regions of the country, including the Program to Renew Cable Lines of 6–110 kV in Saint Petersburg; the Comprehensive Program of Measures to Reduce Above-standard Electricity Losses in Distribution Networks in the North Caucasus; several projects as part of organizing and holding the XXII Olympic Winter Games and the XI Paralympic Winter Games in Sochi in 2014 and others.

As specified in Federal Law No. 371-FZ of November 30, 2011, “On the Federal Budget for 2012 and the Planning Period of 2013 and 2014,” the following additional federal budget funds were to be funneled to the authorized capital of the Company in 2012:

  • 5,044,000 thousand rubles with the aim of carrying out the Comprehensive Program of Measures to Reduce Above-standard Electricity Losses in Distribution Networks in the North Caucasus and implementing the Program to Renew Cable Lines of 6–110 kV in Saint Petersburg;
  • 7,000,000 thousand rubles with the aim of carrying out measures to improve the operating reliability of power facilities and secure an electricity supply for Olympic Games sites;
  • 7,707,079 thousand rubles as part of organizing and holding the XXII Olympic Winter Games and the XI Paralympic Winter Games in Sochi in 2014 and developing Sochi as a mountain climate resort.

On December 3, 2012, the Federal Financial Markets Service of the Russian Federation conducted the state registration of 16,885,114,442 additional shares at 2.16 rubles per share and registered the the Company’s securities prospectus.

Starting from December 7, 2012, the shareholders of the Company can choose to exercise the preemptive right to acquire shares. The preemptive right period expires on January 21, 2013.

As part of this procedure, the Russian Federation paid 19,751,079 thousand rubles for the Company’s additional shares in December 2012.

SHARE ISSUES OF THE COMPANY SUBSIDIARIES

With a view to enabling the Company to transfer the federal budget funds contributed to its authorized capital to the subsidiaries responsible for the implementation of the federal programs financed from federal budget funds, these subsidiaries of the Company issued additional shares in 2012.

LENENERGO

In order for the Company to contribute the federal budget funds received in 2011 pursuant to the Federal Law “On the Federal Budget for 2011 and the Planning Period of 2012 and 2013” with the aim of implementing the Program to Renew Cable Lines of 6–110 kV in Saint Petersburg to the authorized capital of LENENERGO, LENENERGO issued additional shares in accordance with the decision adopted by its Extraordinary General Meeting of Shareholders on November 25, 2011 (Minutes No. 2/2011 of November 28, 2011).

In the course of this additional share placement, the Company purchased 140 345 713 additional ordinary shares LENENERGO, totaling 2,043,434 thousand rubles.

After the share issue, the stake held by the Company in the authorized capital of LENENERGO reached 49.36%, while the percentage of ordinary shares held by the Company in LENENERGO reached 53.41%.

IDGC of Northern Caucasus

In order for the Company to contribute the federal budget funds received in 2011 pursuant to the Federal Law “On the Federal Budget for 2011 and the Planning Period of 2012 and 2013” with the aim of carrying out the Comprehensive Program of Measures to Reduce Above-standard Electricity Losses in Distribution Networks in the North Caucasus to the authorized capital of IDGC of Northern Caucasus, IDGC of Northern Caucasus issued additional shares in accordance with the decision adopted by its Extraordinary General Meeting of Shareholders on November 23, 2011 (Minutes No. 7 of November 25, 2011).

In the course of this additional share placement, the Company purchased 26,552,771 additional ordinary shares IDGC of Northern Caucasus, totaling 2,457,193 thousand rubles.

After the share issue, the stake held by the Company in the authorized capital of IDGC of Northern Caucasus reached 78.01%.

Kubanenergo

In order for the Company to contribute the federal budget funds received in 2011 pursuant to the Federal Law “On the Federal Budget for 2011 and the Planning Period of 2012 and 2013” with the aim of financing projects as part of organizing and holding the XXII Olympic Winter Games and the XI Paralympic Winter Games in Sochi in 2014 and developing Sochi as a mountain climate resort to the authorized capital of Kubanenergo, Kubanenergo issued additional shares in accordance with the decision adopted by its Extraordinary General Meeting of Shareholders on November 23, 2011 (Minutes No. 30 of November 28, 2011).

In the course of this additional share placement, the Company purchased 45,460,746 additional ordinary shares Kubanenergo, totaling 4,702,460 thousand rubles.

After the share issue, the stake held by the Company in the authorized capital of Kubanenergo reached 63.01%.