Energy Standard wins auction for 50% Vinnitsyaoblenergo

LEO, a subsidiary of Konstantin Grygorishyn’s Energy Standard group, was declared the winner of the privatization auction for a 50% stake in Vinnitsyaoblenergo (VIEN UK) that took place today. VS Energy was the only other bidder, while the third that filed documents, Lvivoblenergo of Grigoriy Surkis’ business group, was disqualified by General Prosecutor’s Office for reportedly failing to submit additional information at the request of the SPF. LEO’s winning bid was UAH 176.2 mln, 5% above the SPF’s initial starting price. 

Alexander Paraschiy: The outcome of the auction was expected: Energy Standard controlled 20.3% of the target company before the auction and was the clear favourite. The disqualification of Surkis is in line with our vision that minority shareholders (VS Energy, Energy Standard and DTEK) have already distributed the Oblenergo stakes to be privatized between themselves. The only sweetener in this deal is Vinnitsyaoblenergo’s deal price: UAH 113/share, which is far above the market price (UAH 20 last deal, UAH 40 offer). We expect VS Energy to win today’s auction for 50% in Zakarpatoblenergo.