ALRUD specialists provided comprehensive legal support to Public Joint-Stock Company “Federal Grid Company – Rosseti” (“PJSC “Rosseti”), Russia's largest power grid company, in structuring the consolidated corporate governance of Russia's national power grid property. Upon studying various possible transaction structures, we prepared a detailed step-by-step plan of the intragroup merger of Public Joint-Stock Company “Federal Grid Company of Unified Energy System” with affiliated Public Joint-Stock Company “Rosseti”, Joint-Stock Company “Far East Energy Management Company”, Joint-Stock Company “Tomsk Trunk Grids” and Joint-Stock Company “Kuban Trunk Grids”.
An essential condition for the reorganisation was for the Russian Federation to hold directly at least 75% plus 1 share in the merged company.
The reorganisation was preceded by preliminary consolidation of the grid assets.
Legal analysis included estimation of regulatory impact caused by termination of some of the largest companies in the industry, including impact on the wholesale electricity market related to cross-border electricity transmission, and forecast for the reorganised entity activity during the transition period before receiving all necessary licenses and permits.
PJSC “Rosseti”, being Russia’s largest power grid company, consists of the backbone power grid system and distribution power grid companies.
The merger of PJSC “Rosseti” officially finalizes the division of the national power grid system into backbone and distribution networks.
ALRUD team, was headed by Corporate and M&A Practice Partners Anton Dzhuplin and Sergey Khanaev comprised Of Counsel Timur Akhundov, Associate Irina Kuyantseva, Senior Attorney Artem Sergey, Attorney Marina Naumova, and Trainee Olesya Klesheva.