SPF offers DTEK 45.1% of Zakhidenergo at bid price

Ukraine’s State Property Fund offered DTEK its 45.1% stake in power generator Zakhidenergo (ZAEN UK) at the price DTEK bid on November 25, 2011 (UAH 1.932 bln, UAH 335 per share, 29% premium to the market), the SPF said yesterday. As DTEK was the only bidder at that privatization auction, the SPF had to offer the Zakhidenergo stake at the greater of DTEK’s bid price or the independent appraiser’s estimate which, as announced yesterday, was 1.8% less (UAH 1.898 bln).

Alexander Paraschiy: The independent appraisal of the Zakhidenergo stake was mostly a formality, as we expected (see our news dated Nov. 28 and Dec. 16, 2011). We expect a similar scenario to happen with a 25% stake in Dniproenergo (DNEN UK) – DTEK was the only entity to submit a bid to participate in today’s privatization auction.