MOSCOW, Feb. 28 (UPI) -- Russia's Gazprom and the Siberian Coal Energy Co. will merge power and coal.
The two signed an agreement detailing major terms of a plan to merge the power and coal assets of both the companies.
Siberian Coal Energy Co., Suek, will issue additional shares to be fully placed in favor of Gazprom subsidiaries, which will own a 50 percent plus one share stake in Suek.
Gazprom subsidiaries will pay for Suek additional shares by shares in power utilities. Suek's board of directors will comprise 11 members including five representatives from Gazprom, four from Suek shareholders and two independent directors. The board of directors will be headed by a Gazprom representative, Vladimir Rashevsky, who will be the director general.
The parties will seek permission from the Russian Federation antimonopoly bodies to execute the transaction, which is planned to be completed before Aug. 31, 2008.
