During the first phase in 2007 Wholesale GenCo #5 (WGC-5) and Territorial GenCo #5 (TGC-5) will be spun-off through two ‘transitional’ holding companies when the stakes held by UES, 50% in WGC-5 and near 47.5% in TGC-5, will be transferred after placement of additional shares.
During the second phase of reorganisation from 2007 to the autumn of 2008, HydroWGC, System Operator, Far East Energy Company, and other assets will be spun off under the same scenario of a holding company which then merges with the asset operating company. However, the Federal Grid Company as well as TGCs and thermal WGCs will be spun off under a modified scenario.
The State’s stake in the Federal Grid Company, thermal WGCs and TGCs will be spun off from UES into a single state-controlled Holding Company, which will merge with the Federal Grid Company. As a result, the state will have a 75-80% stake in the Federal Grid Company, which in its turn will have 13-40% of WGCs and TGCs.
During the spin-off procedure, the state’s part of thermal generation will be sold to private investors thus raising funds.
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