DFEC Has Concentrated 91.1% Of Energougol

According to the State Securities and Exchange Commission, the Donbass Fuel and Energy Company (DFEC), SCM’s energy wing consolidated a 91.1% stake in the distribution company Energougol (ENUG: BUY) in 2006. DFEC has 24.62% of the company and the related Cyprian offshore DTEK Holding has a 66.5% stake. Alexander Paraschiy: As we wrote in our September report on the company, Energougol shares were owned by SCM and its related companies. Now all the SCM shares are concentrated in the SCM’s energy holding (DFEC) making its shareholder structure more transparent. This is good news for Energougol’s development, but such large concentration raises the risk of dilution for minority shareholders. Though, we believe the risk is still low as DFEC is attempting to position the holding as transparent and investor-friendly .