Corporate Conflicts At Oblenergos Become More Public.

Last week CEOs of Prykarpatoblenergo (PREN:   HOLD), Chernihivoblenergo (CHEON:   HOLD), Lvivoblenergo (LVON: HOLD) and Poltavaoblenergo (POON: HOLD) wrote an open letter to the President of Ukraine, in which they accuse the State Securities and Stock Market Commission (SSSMC) of acting in violation of the  rights of minority shareholders. They also accuse government organizations of illegally intruding in the activities of the companies.  At the same time, the staff of Prykarpatoblenergo sent an open letter to the Prime Minister and local administration where they blame the CEO of the company of illegal using the company assets and funds that had been set aside to modernize the company. Concorde Capital: The conflict between Surkis and Grigorishyn for four Oblenergos goes on. Despite Grigorishyn’s lobbying power, he cannot regain the positions he lost two years ago. Surkis, who continues to control the Oblenergos despite its weakened lobbying power, has efficiently defended itself. We believe these conflicts are in fact positive for these companies, as both conflicting parties increase their control and will prevent possible abuses and the illegal use of funds.