SPF Might Sell Stakes in Six Oblenergos in September

According to Valentina Semeniuk, head of the State Property Fund, yesterday the government approved transferring of 25%-27% stakes in six Oblenergos from the National Energy Company to the SPF. The list includes Odesaoblenergo (ODEN: N/R), Prykarpatoblenergo (PREN: BUY), Lvivoblenergo (LVON: HOLD), Chernihivoblenergo (CHEON: SELL), Sumyoblenergo (SOEN: N/R) and Poltavaoblenergo (POON: SELL). Semeniuk plans to sell these stakes in September on local stock exchanges. Alexander Paraschiy: According to the Cabinet, privatization can start only after approval of the Conception of Electricity Companies Privatization. At the moment there is no information that the government approved Conception. Though, we see the desire of SPF head to sell Oblenergo stakes in September (even without approval of Conception). Ahead of parliamentary elections, successful privatization might bring political dividends for Semeniuk and her Socialist Party. There is no doubt that privatization will be “successful”, i.e. price will be high, as rival shareholders are battling for these Oblenergos.