JSC "Energomachexport - Power Machines Group" is to issue additional shares

The special meeting of the shareholders of the JSC "Energomachexport - Power Machines Group", which took place on 30 August, 2002, passed the decision to issue addition shares of the company. This is a step on the way to creation a single company from the enterprises of the "Power Machines Group".

The shareholders of the JSC "Energomachexport - Power Machines Group", the parent company of the Power Machines Group" passed the decision to increase its authorised capital by placing of 24 770 ordinary shares at face value of 1 thousand roubles. At present the authorised capital of the JSC "Energomachexport - Power Machines Group" is 42 000 shares (31 500 ordinary and 10 500 preference shares) at face value of 1 thousand roubles.

Besides the shareholders of the JSC "Energomachexport - Power Machines Group" two more companies, Siemens and Lenenergo will be able to participate in placing of the additional shares, which will be held on the principle of a closed subscription. Shareholders of the JSC "Energomachexport -Power Machines Group", which own 98% of the shares are the companies that represent interest of the holding company "Interros" and its partners (these companies own the control packet of shares of the JSC "LMZ" and the JSC "Electrosila"). The Siemens group owns 4,28% of shares of the JSC "LMZ" and 14,34% of the JSC "Electrosila"; "Lenenergo" – 10,4% of shares of the JSC "LMZ".

The additional shares of the JSC "Energomachexport - Power Machines Group" can be paid for by the shares of the JSC "LMZ" and the JSC "Electrosila" or by cash facilities. According to the decision of the shareholders’ meeting the price of placement of one share of the additional emission is 58.119,6 roubles. Valuation of the shares was done by the independent qualified appraiser - the company "Rosexpertiza". In accordance with valuation of the same company the market value of the property, used in payment for the placed shares in defined in the following way: one ordinary share of LMZ – 44.03 roubles, one ordinary share of Electrosila – 69,19 roubles.

The terms for placement of the additional shares of the JSC "Energomachexport - Power Machines Group" – not more than three months counting from beginning of the placement.

The next step on the way to creating a single company will be a merger of the JSC "LMZ, JSC "Electrosila", followed by the JSC "Turbine Blades Plant" and the JSC "Kaluga Turbine Works".