Energy Ministry May Sell Oblenergo Minority Stakes.

Olexy Sheberstov, a deputy energy minister, said the ministry is working on a plan to sell the state’s remaining “blocking” stakes (more than 25%, less than 40%) in several Oblenergos, as the state sees no gain from these stakes. His comments came after the State Property Fund released a detailed plan to sell down state stakes in GenCos and Oblenergos to reach levels of 60%, 40% or 25%, whichever is nearest (see our notebook issued yesterday).  Alexander Paraschiy: The ministry’s plan matches what we have been arguing would be the best way to maximize revenues from energy sector privatization this year. The state could sell its stakes of around 25% in Prykarpatoblenergo (PREN: BUY), Lvivoblenergo (LVON: BUY), Poltavaoblenergo (POON: BUY), Chernihivoblenergo (CHEON: SELL) and Sumyoblenergo (SOEN: SELL), where two rival shareholder groups are in conflict and therefore would likely pay a significant premium for the state’s stakes (we estimate up to 70% over market prices).