SPF sells 25%+1 of Chernihivoblenergo for UAH 223.4 mln

At today’s tender, the State Property Fund of Ukraine sold a 25%+1 stake in Chernihivoblenergo (CHEON) for UAH 223.4 mln. This represents a 88% premium to the starting price (UAH 119 mln) and 50% premium to yesterday stock’s offer price on the PFTS. The winning bidder is local brokerage Online-Capital. Alexander Paraschiy: Today’s privatization is definitely a success for the SPF. The final tender price is UAH 3.5 per share higher than the starting price, which suggests tough competition between the two bidders (the step in the auction was UAH 0.5 per share). The EV/S based on the tender’s price is 1.58, or a 55% premium to the starting price multiple of the failed tender for Poltavaoblenergo (POON) and only a 6% discount to the starting multiple for Prykarpatoblenergo (PREN). Chernihivoblenergo’s case suggests the reason for the failure of POON and PREN tenders was not a high starting price itself, but potential bidders’ strong belief that the SPF will decrease the price in the future. Today’s successful auction renders the chances of the SPF lowering the starting prices for stakes in POON and PREN unlikely, raising the probability that these two companies could be privatized already this month.