At the Board of Directors meeting which was held on June 4, 2007 it was resolved to issue additional shares of the Company and the prospectus of securities of the Company was approved.
The Board of Directors decided to increase the charter capital of the Company by way of placement of additional 1,492,000,000 ordinary registered shares in the non-documentary form with a nominal value of 0.01 rubles each. The total nominal value of the additional share issue to be placed by open subscription amounts to 14,920,000 rubles.
Currently the charter capital of OJSC “Power Machines” amounts to 72,169,387.08 rubles (divided into 7,216,938,708 ordinary shares with nominal value of 0.01 rubles each).
The shareholders of the Company will have the preemptive right to purchase additional shares. In accordance with the Russian legislation the list of persons eligible to the preemptive right shall be drawn up on June 4, 2007.
In accordance with the Board of Director’s resolution the price of placement of additional shares will be determined upon the expiration of the term for exercising the preemptive right.
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The Board of Directors also resolved to recommend the General Meeting of Shareholders which is scheduled for June 29, 2007 not to pay any dividend based on the results of the Company performance in 2006 and also considered the report on the implementation of the budget of the Company for the 1st quarter of 2007.
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The Board of Directors also approved several interested party transactions and resolved to propose for approval by the General Meeting of Shareholders the transactions with OJSC “Mosenergo” (HEGP-27).
Among the transactions approved by the Board of Directors is the contract for supply of spare parts for turbine GTE-160 for OJSC “Severo-Zapadnaya HEGP”; the contract for supply of spare parts for turbogenerator ТАP-12-2КUZ for OJSC “Sochinskaya HEGP,” the contract with Siemens Aktiengesellschaft for provision of services in connection with the projects being implemented by OJSC “Power Machines” and related to supply of equipment for HEGP-21 and HEGP-27 of OJSC “Mosenergo.”