NC ECU to spurn Dniprooblenergo’s AGM on June 30

The National Energy Company of Ukraine (NC ECU) will not check in for Dniprooblenergo’s (DNON: HOLD) AGM on June 30, NC ECU President Volodymyr Zinevich said yesterday. The NC ECU’s rationale is that all items on the agenda were considered at the AGM on April 30 that it organized. Dniprooblenergo’s management does not recognize the validity of the April 30 AGM, where the NC ECU voted to replace the DTEK-loyal CEO, and claims the AGM was rescheduled ahead of time for June 30. Alexander Paraschiy: We continue to believe that the April 30 AGM will not be recognized by courts (see our news comment on May 5), meaning that June 30 AGM presents an ideal opportunity for the NC ECU to replace the company’s management. Without the NC ECU’s 75% stake, the AGM will fail due to lack of quorum and the CEO will retain his position. Zinevich’ declaration can be interpreted in two ways: (1) he is trying to reassure Dniprooblenergo’s management so that they will continue with AGM preparation as usual and not attempt to reschedule it again, making any decisions made there valid, and (2) DTEK could have found common ground with the NC ECU and is content to preserve the status quo.