Cherkasyoblenergo Added to Privatization List for 2008

According to Ekonomicheskie Izvestia, Ukraine’s Cabinet of Ministers included 71% of shares in Cherkasyoblenergo (CHON: HOLD) on the 2008 privatization list. Currently, a 46% stake is controlled by the National Energy Company of Ukraine (NC ECU), while 25% is in the charter fund of another state-controlled company, UkrEsCo. According to the head of UkrEsCo supervisory board’s, transferring 25% of Cherkasyoblenergo to the State Property Fund for privatization is technically hard to realize, which makes privatization of 71% of the company as one block impossible. Alexander Paraschiy: It looks like inclusion of the company into the privatization list was lobbied by one of the company’s current shareholders and the most probable buyer of the state’s stake: Konstantin Grigorishyn. If so, there is a high chance that the company will be privatized, but only 46% of shares. We estimate the state could sell this stake for USD 125 mln.