SPF names two bidders for 45% in Chernivtsioblenergo

Ukraine’s State Property Fund said yesterday two bidders filed documents to privatize 45% in Chernivtsioblenergo (CHEN UK) on February 7: LEO, controlled by Energy Standard Group, and a subsidiary of VS Energy Group. A day earlier, the SPF had said it had three bidders, according to Interfax.

Alexander Paraschiy: VS Energy is the owner of a 22% stake in Chernivtsioblenergo and is the main candidate to privatize the company, in our view. While we believe this auction will go ahead as planned, we do not expect any significant increase in the price above the starting bid, and do not foresee any stock market reaction to the news.