Ukraine values its 61% stake in Donbasenergo at UAH 1 bln

The State Property Fund of Ukraine plans to raise about UAH 4 bln from the sale of the state’s stake in electricity companies this year, SPF Head Alexander Ryabchenko said on June 10. The state’s 60.7% stake in Donbasenergo can bring about UAH 1 bln, he said. The current market capitalization of the stake is UAH 0.3 bln.

Alexander Paraschiy: We estimate the maximum possible revenue the state can gain from the sale of its stake in eight electricity companies at UAH 2.0 bln (refer to our news of June 3). Still, the SPF’s UAH 4 bln plan can be achievable if it properly executes the sale of the Donbasenergo stake. In particular, Donbasenergo’s fair value can be lifted to much more than the targeted UAH 1 bln if the state power sector regulator approves a partial (60%-80%) compensation for the company’s planned UAH 9.3 bln reconstruction project via a special tariff surcharge (refer to our June 7 news).