Dniproenergo Fails to Hold AGM Yesterday

Dniproenergo’s (DNEN: BUY) AGM, scheduled for March 27, failed to convene. The official reason is that shareholders were unable to check in for the AGM because the company’s registrar, Ukrnaftogaz, did not provide Dniproenergo’s list (register) of shareholders. Representatives of the majority shareholder, the National Energy Company (NC ECU), were among those willing to check in. Alexander Paraschiy: The AGM’s failure was an expected event (refer to our Dniproenergo note of March 24) and is beneficial for DTEK: absence of the AGM means the status quo for Dniproenergo’s management and supervisory board. We regard this event as positive for minority shareholders: low influence of the NC ECU on Dniproenergo’s operations will prevent transfer of the corporate conflict between the NC ECU and DTEK inside the company, which would mean a risk of worsening operating results.