EOS Russia ? 29.9% share buyback and privatizations of distribution companies

The board of EOS Russia intends to request a mandate from the shareholders to perform a synthetic buyback program of up to 29.9% of outstanding shares.

The first public announcements regarding the awaited privatizations of electric distribution companies (MRSK's) in Russia has been made and indicate that the first assets can be sold during Q1, 2013.

The board of directors of EOS Russia intends to request a mandate from the shareholders, at an upcoming shareholders meeting, to perform a synthetic buyback program of up to 29.9% of outstanding shares. If such mandate is granted, the synthetic buybacks are intended to commence on 22 October 2012.

EOS Russia's financial advisor is SEB Enskilda.

EOS Russia will mainly sell non-core assets in its portfolio to finance the synthetic buybacks. This will mean an even higher focus on the distribution companies in EOS Russia's portfolio. An extraordinary general meeting for the purpose of passing a resolution on the mandate for synthetic buybacks is intended to be held in August or September. A notice convening such meeting will follow in due course.

The first public announcements regarding the awaited privatizations of electric distribution companies (MRSK's) in Russia has been made and indicate that the first assets can be sold during Q1, 2013. EOS holds significant positions in several distribution companies and sees this step, together with expected finalizing of terms and levels of parameters of RAB (Regulated Asset Base) in the autumn, as important factors for higher valuations in the sector.

EOS Russia is an investment company headquartered in Stockholm. The overall objective of the company is to offer attractive returns via investments in the Russian electricity industry. EOS Russia's shares have been listed on First North, a marketplace operated by the Stockholm Stock Exchange, since 25 June 2007.