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. Last Updated: 07/27/2016

UES Says It Will Go Pro Rata

ST. PETERSBURG -- Unified Energy Systems will give shareholders pro rata stakes in generating companies to be spun off in a restructuring and auction off any stock unclaimed by current owners, a company official said Monday.

"The scheme we are looking at now in our draft [reform strategy] document assumes that, as a first step, UES shareholders have the opportunity to receive the same percentage of shares in wholesale generating companies for their shares in UES," deputy CEO Vyacheslav Sinyugin told reporters.

Private investors have long worried that they may lose out in the reform. Many see a pro rata distribution of stock in the spun-off firms as a way to ensure they receive their fair share of the assets.

"At the second stage, whatever was not exchanged would be put up for auction where the means of payment is UES shares," Sinyugin said.

UES's board of directors is due on Friday to review the "5+5" five-year strategy for the company.

Sinyugin's remarks were at odds with a proposal reported Friday that envisaged UES shares being used as currency in auctions of stakes in the generators, but with no mention of investors requesting pro rata stakes.

The report pushed the stock to an 18-month high as market players bet that the plan would cause a wave of buying by Russian industrial giants with strategic interests in owning the UES generators. UES shares soared again Monday, gaining nearly 8 percent to close at 19.2 cents.

(Reuters, MT)