Jul 03, 2007. /Lesprom Network/. United company Ilim Group established on the basis of assets of forest industry corporation Ilim Pulp by transition to unique share of OAO Kotlassky PPM, OAO Pulp-and-cardboard mill, OAO Bratskcomplexholding, OAO PO Ust-Ilimsk LPC and their joining to Group Ilim shas started operations, group’s press service reported. The mills are converted into affiliates of Group Ilim and are located in Korjajma, Bratsk and Ust-Ilimsk, respectively. Head office is situated in St Petersburg. In course of reorganization new organization structure was formed in head office, affiliates’ structure was unified and organized in accordance with products lines, while part of functions was centralized. Serguey Kostylev, earlier CEO of Ilim Pulp Corp., was appointed Group Ilim CEO. According to him, “this is really a very important moment, we prepared to it for some years. The reorganization of the company was aimed, first of all, at increment of transparency, quality of corporate management which allows increasing group’s capitalization”. Positive decision on reorganization of four enterprises mentioned above by their joining to Group Ilim was made at shareholders meetings held on February 5, 2007. The meetings also approved agreement on joining which includes definition and order of coefficients of shares conversion into the shares of Ilim Group. The coefficients were determined according to reports of independent appraiser and envisages conversion of one share of Kotlassky PPM into four shares of Ilim Group, of one share of PO Ust-Ilimsk LPC into 14 shares, of Pulp-and-cardboard mill – into 719 shares, of Bratskcomplexholding – into 120 shares. Price of share repurchase from shareholders who are not supporting the reorganization was determined at RUR 15.02 for Kotlassky PPM share, RUR 52.6 for PO Ust-Ilimsk LPC share, RUR 2700.45 for Pulp-and-cardboard mill share, RUR 450.35 for Bratskcomplexholding share. Additional stock issue of Ilim Group was registered on March 22, 2007. On July 2, 2007 shares of Kotlassky PPM, Pulp-and-cardboard mill, Bratskcomplexholding and PO Ust-Ilimsk LPC were excluded from uniform state register of legal entities. Enterprises engaged in mechanical wood-processing weren’t included in the group. On the base of these enterprises the largest wood-processing holding in Russia is being created, press service informed.