Vostok-Finance Limited (100% subsidiary of RAO ES East, PJSC) completed the procedure of receiving ordinary and preferred shares of PJSC RAO ES EAST in the voluntary tender offer. RAO ES EAST shareholders transferred shares amounting to 11.11% of the total share capital.
In accordance with the terms of the voluntary tender offer the shareholders were entitled to exchange RAO ES East, PJSC ordinary and preferred shares into ordinary shares of PJSC RusHydro at a price of RUB 0.5768 per share (calculated as a weighted average price for the past six months prior to tender offer announcement). The corresponding conversion ratios were: 0.6068 shares of PJSC RusHydro for 1 ordinary share of RAO ES East, PJSC and 0.3814 shares of PJSC RusHydro for 1 preferred share of RAO ES East, PJSC. The shareholders also could sell ordinary and preferred shares of RAO ES East, PJSC at RUB 0.35 and RUB 0.22 respectively. The final settlement with the participants is to be complete on February 17, 2016 under the tender offer conditions.
The tender offer has been made pursuant to the approved long-term development plan of RusHydro Group aimed at increase in efficiency of the management of RAO Energy systems of the East holding. The acquisition of over 10% of total shares of RAO ES EAST, PJSC by the tender offer makes the RusHydro control over 95% of the total shares. This gives RusHydro Group the right to forward the request for the compulsory acquisition (squeeze-out) of all the ordinary and preferred shares within six months upon the termination of the tender offer.