Gazprom and Suek sign agreement to merge coal and power assets

                                                                                         

Russian gas monopoly Gazprom and the Siberian Coal Energy Company have signed an agreement detailing the major terms to merge the power and coal assets of both the companies.
Pursuant to the agreement, Siberian Coal Energy Company (Suek) will issue additional shares to be fully placed in favor of Gazprom subsidiaries, which will own a 50% plus one share stake in Suek. Gazprom subsidiaries will pay for Suek additional shares by shares in power utilities .
Suek's board of directors will comprise 11 members. It will consist of five representatives from Gazprom, four from Suek shareholders and two independent directors. The board of directors will be headed by a Gazprom representative, Vladimir Rashevsky, who will be the director general. The company's shareholders will enter into an English law based agreement that will regulate their relations including the corporate management principles. The company is later planning to hold an international IPO. The parties will seek permission from the Russian Federation antimonopoly bodies to execute the transaction, which is planned to be completed before August 31, 2008. As planned, Suek will contribute power generation, coal mining and processing assets to the new company .

About the author:
Velimir Lackovic runs internet portal "Energetika" ( http://www.energetika.co.yu )
dedicated to renewable energy sources,oil gas and energy efficiency. Velimir has
completed gratuadte studies in power systems engineering and
has industry experiance of over 20 years in this field.

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