UAC to increase charter capital in 2009-2010, United Aircraft Corporation (UAC)

Release Date: 2009-01-23

United Aircraft Corporation (UAC) announces its plans of an additional share issue in 2009-2010.

Pursuant to Decree No.140 of the President of the Russian Federation of 20.02.2006 “On United Aircraft Corporation” and Decree No.69 of 19.01.2009 “On issues concerning JSC United Aircraft Corporation” and for the purposes of completion of the consolidation process of the aircraft construction industry, UAC plans to conduct an additional shares issue in 2009-2010. The shares are to be placed under closed subscription in favor of the Russian Federation and a number of private shareholders.

In the course of the planned UAC shares issue the state is to contribute the state-owned stakes in the aircraft industry enterprises, and further to allow the private shareholders in UAC subsidiaries to swap their shares to the additional UAC shares. Besides, certain financial institutions might participate in the shares issue and pay for UAC additional shares in cash.

The Russian Federation is to pay for UAC shares in cash (as provided by the law on the Russian Federation Budget for 2009-2011) not less than 6 bln rubles, as well as in the following blocks of shares: 1.17 % of JSC Aviation Holding Company Sukhoi, 0.22 % of Voronezh Aircraft Manufacturing Company, 17.31 % of Ilyushin Finance Co, 28.69 % of Finance Leasing Company, 100 % in Russian Aircraft Corporation MiG and 100 % in Kazan Aviation Production Association of S.P. Gorbunov.

By the end of February, 2009, UAC Board of Directors should approve the principal terms of the shares issue: amount of the shares to be issued, the type of shares distribution, list and the price of assets eligible as means of payment for UAC shares. UAC Board of Directors will also call for an extraordinary shareholders meeting for the end of March, 2009, to approve the Board`s decision on additional shares issue.

Subject to receiving all necessary corporate approvals, UAC will announce the principal shares issue terms by the end of February, 2009. The prospectus to be published and the commencement of the shares placement are planned for June, 2009. The placement period is set at its most possible duration of 1 year and the shares are to be allocated by May, 2010.
Type: NORMAL
Company: United Aircraft Corporation (UAC)
 
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