The transactions have been made to acquire 100% of the share capital of REP Holding by Gazprom Energoholding Group. The transactions have been carried out with the participation of GBB Asset Development which is part of Gazprombank and GEH Industrial Assets, which acted as the buyer of REP Holding, as well as OGK-2 and Mosenergo which has provided financing for restructuring REP Holding debt load.

The acquired assets also include Nevskiy Zavod (100%) and Electropult-System (51%). As agreed by the parties, Electropult Plant is not included into the perimeter of the transaction and remains under the control of the former shareholders.

"By implementing the new strategy of Gazprom in the power generation sector, Gazprom Energoholding is diversifying its activities by entering new segments and becomes a major player in the power equipment market. On the sites of REP Holding, Gazprom's reliable long-term partner, we will develop production of equipment for both gas transmission systems and for power-generating plants, which will allow us to obtain synergistic effect, including due to improving the efficiency of the manufacturer-customer interaction and the measures for further localization of production," said Denis Fedorov, CEO of Gazprom Energoholding.

"This transaction has become feasible owing to the professional work done by the teams of Gazprombank, Gazprom, REP Holding and GPB Asset Development to improve the efficiency of the company, which made it possible to significantly improve its financial performance and implement measures aimed at increasing the production capacity, introducing advanced design solutions and developing the product line. Currently, REP Holding is successfully implementing a number of significant strategic projects of federal importance," said Tigran Khachaturov, Deputy Chairman of Gazprombank Board of Directors.

Background:

Gazprom Energoholding, a wholly-owned subsidiary of Gazprom, manages the core companies of the Gazprom Group in the power generation sector. Gazprom Energoholding is the leader in production of thermal and electric power by thermal generation companies in Russia. Gazprom Energoholding stations generate about one-sixth of all electric power within the Russian unified energy system. Gazprom Energoholding holds a leading position in the heat supply market of the Moscow region, the world's largest heat market. Gazprom Energoholding main production companies are Mosenergo, TGK-1, OGK-2 which produce electric and thermal power mainly on natural gas and coal, as well as the largest heat supply company in the Moscow region –MOEС.

GEH Industrial Assets is a specialized company of Gazprom Energoholding Group established to consolidate the assets in the field of power engineering and electrical equipment production.

REP Holding is a developer, manufacturer and supplier of new-generation energy equipment, including industrial gas turbines with a capacity up to 32 MW, steam turbines, centrifugal and axial compressors, gas compressor units, and electrical goods. REP Holding specializes in design, manufacture and integrated supply of power generating equipment for the oil & gas, metallurgical and chemical industries, the power generation sector, and the power grid complex. The equipment supplied by the Holding is widely used in the upgrading of gas transmission systems, in the construction of modern power units and power plants, in small-scale power generation, in the LNG market, and in several other sectors.

GPB Asset Development was established in January 2017. It is a specialized company in the structure of Gazprombank (Joint Stock Company), established to improve operational efficiency in terms of asset management, restructuring of troubled assets, and supporting transactions with assets under management.