On January 21, the Board of Directors of Russian Railways voted to approve the absentee ballot of a number of inter-related transactions to sell 15% of the authorised capital of its subsidiary TransContainer by competitive
selection.
The decision was made in accordance with a Russian Government order dated December 29, 2007.
Following the transactions, the buyers of shares are: The European Bank for Reconstruction and Development (9.25% of the authorised capital), Moore Capital Management LLC (2.5%), GLG Emerging Markets Fund (2.5%) and Troika Dialog Investments Limited (0.75%).
As a result of the placement, TransContainer's capitalisation was 52.2 billion roubles and Russian Railways netted 7.8 billion roubles from the sale of shares, which will be used to finance an investment programme.
Russian Railways plans to hold a public offering of up to 30% of TransContainer's shares on the Russian stock market around November 2008.