SPF postpones SOEN, PREN privatization auctions

The State Property Fund said yesterday that it postponed the privatization auctions for a 25%+1 stake in Sumyoblenergo (SOEN), and a 25.02% stake in Prykarpatoblenergo (PREN), both scheduled for today, May 22 due to a lack of bidders. Both tenders are now set for May 29. Alexander Paraschiy: As we highlighted in our news yesterday, the starting price for Sumyoblenergo corresponds to higher EV/S and EV/Electricity multiples than the price of Poltavaoblenergo (POON), whose tenders failed to take place five times this year. It looks like the potential bidders for all the Oblenergo stakes put for sale (POON, SOEN & PREN) are waiting for the SPF to decrease the starting price. We wait to see who gives in first: the SPF (by lowering the starting price) or the Oblenergos’ private owners (by filing applications to participate in the tenders).