Dniproenergo: Merger allowed, Investment plan approved

The CEO of Dniproenergo (DNEN: HOLD) has announced a USD 2.8 bln investment program till 2030. Next year, the company plans to spend USD 140 mln on CapEx. A new investor, the Donetsk Fuel and Energy Company (DTEK), will supply part of the funding, with the rest expected to come from bank loans. Last Friday the Anti-Monopoly Committee of Ukraine announced that it allowed the merger of Investment Company Ltd with Dniproenergo. Alexander Paraschiy: To finish the merger process, Dniproenergo needs to register the new charter fund with the State Securities and Exchange Commission. Dniproenergo’s CapEx plan till 2030 implies the company expects to spend USD 340 per each kW of installed capacity. This amount is enough to fully reconstruct all of the company’s generating units. Dniproenergo is in a hurry to demonstrate the positive results of the merger: its resolved debt problem and cash inflow from DTEK will allow the company to attract banking loans to expand modernization. We expect more positive news from Dniproenergo in the near future.