20 Jun 2013 14:57
New Shareholder Agreement adopted for governance of Federal Grid Company
20 June 2013, Moscow- Federal Grid Company of Unified Energy System ("Federal Grid Company" or "the Company") (Moscow Exchange, LSE: FEES), announces that in accordance with presidential decree No. 1567 "On Open Joint Stock Company Russian Grids" dated 22 November 2012, Federal Grid Company shareholder Russian Grids OJSC ("Russian Grids") and the Federal Property Management Agency of the Russian Federation ("the Agency") on 17 June 2013 entered into an Agreement concerning the Procedure for Managing and Voting with Shares of Federal Grid Company, pursuant to which Russian Grids and the Agency agreed to regulate certain matters related to the Federal Grid Company's corporate governance (the "Shareholders Agreement").
The Shareholders Agreement provides, among other matters, that Russian Grids will only exercise its rights as a shareholder of Federal Grid Company in accordance with instructions received by Russian Grids from the President of the Russian Federation, the Agency or certain stipulated officers of the Russian Government.
According to the Shareholders Agreement Russian Grids also undertakes to procure that directors of Federal Grid Company nominated by Russian Grids act in strict accordance with the aforementioned iinstructions when resolving certain matters at the board of directors of Federal Grid Company, including the approval of the following items:
·; shareholders meeting agenda;
·; increase in share capital;
·; appointment of executive bodies;
·; dividend recommendations;
·; major transactions;
·; participation of Federal Grid Company or its subsidiaries in other companies;
·; election of the chairman of the board;
·; and other matters required to implement any instructions from the President of the Russian Federation, the Prime Minister or his First Deputy.
·;
The Shareholders Agreement was approved as an interested party transaction by the shareholders of Russian Grids, other than the Agency, which was deemed an interested party, at the extraordinary general meeting of Russian Grids on 6 May 2013. The Shareholders Agreement is governed by Russian law.
Enquiries:
Contacts | ||
Analysts / Investors | ||
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 | ||
M:Communications | Work | Mobile |
Tom Blackwell | +7 (495) 363 2841 | +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. Company operates over 131,000 km of transmission lines and has over 334 GVA of installed transformer capacity. Based on the length of transmission lines and transformer capacity in place, 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 75 regionsof Russia, covering a territory of 14.8 million square kilometres. Its customers are regional distribution companies, electricity suppliers and large industrial enterprises. The Company is a natural monopoly with 79.64% stake controlled by the Government of Russia.
Federal Grid Company was incorporated in June 2002 as part of reorganisation of Russia's electrical power industry.
Federal Grid Company's common shares are included on the MICEX-RTS stock exchange underthe ticker FEES and the Company's GDRs are listed on the London Stock Exchange and traded under the same FEES symbol.
In 2012 the Company's IFRS revenue was RUB 140,313 million, adjusted EBITDAwas RUB 82,133 million, and adjusted profit for the period was RUB 29,956 million.
Further information can be found at www.federal-grid.com