Kyiv Appellate Court Rules Against SPF in Luhanskteplovoz Case

Yesterday, the Kyiv Appellate Court issued a verdict in favor of Dniprovahonmash’s (DNVM: N/R) barring the privatization of Luhansktepolovoz (LTPL: BUY) on March 23 to Bryansk Heavy Machinery (BRMU RU). According to UNIAN, the court made two rulings: (1) The SPF barring Dniprovahonmash from participating in the tender was recognized illegal, and (2) the SPF’s order to hold the privatization tender is nullified. Inna Perepelytsya: The legal saga around Luhanskteplovoz is far from over.Though the recent court decision implies that Bryansk Heavy Machinery must return LTPL shares to the SPF, it seems pretty obvious that BRMU’s lawyers will find legal ways to drag out implementation of the decision. We continue to expect that the final decision on Luhansktepolovoz’ privatization will be made by the High Economic Court after parliamentary elections. Our view remains unchanged: the privatization to Bryansk Heavy Machinery will stand. The stock performed +142% since privatization tender (March 23) reflecting that the market valued highly what the new owner has brought to the table.