SPF sets starting price for Chernihivoblenergo stake at UAH 119 mln

The State Property Fund announced yesterday that it has set the starting price for the privatization of a 25%+1 stake in Chernihivoblenergo (CHEON) at UAH 119.019 mln. The privatization auction is due to take place on May 14 on the Kyiv International Stock Exchange. Alexander Paraschiy: The starting price is just what we expected (refer to our April 22 note), and corresponds to a EV/S multiple of 0.86 (a 26% premium to Lvivoblenergo (LVON) tender’s EV/S, and discounts of 16% and 49% to starting price EV/S of POON and PREN). As was the case with Lvivoblenergo, Chernihivoblenergo’s starting price seems to be attractive for strategic and portfolio investors.