At its extraordinary shareholders meeting on April 28, 2007, Russian Territorial
Generating Company 1 (TGC-1) decided on a share issue. TGC-1's Board of
Directors has today confirmed the decision. The total maximum amount of new
shares is 1,875,228,129,448.
The share offering aims at increasing the share capital of TGC-1 by
approximately 32.4 billion rubles (about 930 million euro). Fortum´s target is
to maintain its current, slightly over 25% stake in the company. Fortum is thus
preparing for acquisition of the corresponding amount of new shares.
The planned use of the new capital is financing the company´s investment program
to increase production capacity.
TGC-1 in North-West Russia was founded in 2006 as part of the Russian power
sector reform. The company operates in a large area, from St. Petersburg to the
Kola Peninsula. The production capacity of TGC-1 is about 6,000 MW power and
about 17,000 MW heat. With its slightly over 25% stake, Fortum is the second
largest shareholder of the company.
Fortum still owns about one third of the electricity distribution company
Lenenergo in St. Petersburg.
SVP, Corporate Communications
Kari Kautinen, Vice President, Fortum Corporation, tel . +358 50 453 2174
Helsinki Stock Exchange