Ukraine government schedules Donbasenergo privatization for August 21

The State Property Fund of Ukraine announced a tender to sell its 60.77% stake in GenCo Donbasenergo (DOEN UK) on August 21, the fund’s official newspaper reported on July 24. The tender conditions printed in the paper fully coincide with those earlier approved by the government (refer to our news from July 12). Following DTEK’s announcement that it won’t participate in the tender, another possible candidate, the MAKO holding company, owned by Oleksandr Yanukovych (the president’s son), officially declined its interest in acquiring the stake.

Alexander Paraschiy: Most likely, the privatization tender will follow the Zakhidenergo, Dniproenergo and Ukrtelecom scenarios, in which only one contender participated (Kharkiv CHP-5, we expect). In this case, the SPF will perform an independent appraisal of the stake and sell it to a single bidder afterwards. We believe the deal price will be close to the starting price for the tender, or UAH 641 mln.