Mosenergo expects few shares to be redeemed
RosBusinessConsulting. Tuesday, Jun. 29, 2004, 6:08 PM Moscow Time
The management of Mosenergo believes that the number of shareholders wishing to offer their shares for redemption will be insignificant. Mosenergo Senior Deputy General Director Dmitry Vasilyev declared at a news conference in Moscow today that a vast majority of the shareholders in the company had voted for the drafted program of reforms in the company at the annual general meeting. According to him, this shows serious confidence in the management, and therefore, the number of shareholders wishing to sell their shares will not be high. However, the company has reserved finds for buying out shares. If the amount of shares to be bought out is low, the funds that have been reserved will be allocated for the company's internal needs, Vasilyev pointed out. Additionally, these funds may later be necessary for founding new joint-stock companies to be separated from Mosenergo. Vasilyev underlined that a decision to submit shares to the management for redemption would hardly be efficient, as the present market price of the company's shares is higher than the price estimated by an independent appraiser. The deputy general director of Mosenergo added that complete understanding with all creditors had been reached, and none of them would require that the company fulfill its liabilities ahead of schedule with regard to the reforms. Liabilities to foreign creditors will be reassigned to the power generating company, which will keep the Mosenergo name, Vasilyev remarked. As reported earlier, Mosenergo's shareholders approved a drafted program of reforms in the company on June 28. Under Russian law, shareholders who did not participate in the voting on this issue or voted against this decision are entitled to submit their shares for redemption. |
