SPF estimates income from Oblenergos’ placement at UAH 1 bln

Acting Head of the State Property Fund of Ukraine (SPF) Dmytro Parfenenko estimates the value of the 25%-27% stakes in the six conflict Oblenergos at UAH 1 bln (about USD 130 mln). The list of Oblenergos the SPF is planning to sell at stock exchanges beginning in May 2009 includes Chernihivoblenergo (CHEON), Lvivoblenergo (LVON), Odesaoblenergo (ODEN), Poltavaoblenergo (POON), Prykarpatoblenergo (PREN) and Sumyoblenergo (SOEN). Alexander Paraschiy: We believe the SPF’s estimate of Oblenergos’ value is fair. Recall that in 2004 Ihor Kolomoiskiy paid USD 112 mln for 8%-20% stakes in eight Oblenergos, five of which are now going to be privatized. Still, concerns about the probability of the privatization tenders being held remain: it is not clear whether the main candidates to buy the stakes are ready to pay fair value for the stakes. For instance, VS Energy, the only real candidate for ODEN, is not interested in paying much for the stake. Candidates for the other Obelenergos (Kolomoiskiy and Konstantin Grigorishyn) seem ready to battle for the state stakes, i.e. pay a premium for them, but at the moment it is not clear whether either have enough financial resources to participate in the tender.