DTEK offered call option for 45.1% of Zakhidenergo

The State Property Fund of Ukraine announced on Friday that it offered DTEK (DTEKUA) its 45.1% stake in GenCo Zakhidenergo (ZAEN UK) at a price to be determined by an independent appraiser. DTEK’s bid, the only one for the stake, was UAH 1,932.1 mln (UAH 335 per share +39% premium to the market), or just UAH 0.1 mln above the earlier announced starting price. As there were no other contenders, the SPF has to offer the stake to DTEK at the appraisal price, but no lower than the bid. DTEK has yet to officially agree on the purchase option. Once it does, the SPF will select an independent appraiser, and the option price could be announced in mid-January 2012. Alexander Paraschiy: Taking into account the sale of the government’s stake in Ukrtelecom a year ago under a similar scheme, we believe the appraisal price of Zakhidenergo’s stake will be within a 1% premium to DTEK’s bid. As Zakhidenergo’s stock is not liquid, we do not expect any market reaction to the deal.