Court Deems Dniproenergo’s Additional Share Issue Invalid

According to Dniproenergo’s (DNEN: HOLD) press service, the Appellate Economic Court of the Zaporizhya Region ruled Dniproenergo’s charter fund increase via additional shares issue invalid. The court’s decision was based on the action of the investment company Biznes Invest, which is related to Privat Group (PRIVAT_BGI). Dniproenergo is going to appeal against the court’s decision. Alexander Paraschiy: Because the additional shares issue was only a part of the company’s financial recovery process, it is highly unlikely the issue will be cancelled. Money paid by DTEK for newly issued shares has already been spent by Dniproenergo to repay its USD 200 mln debt. Now, it looks like the approval of Dniproenergo’s additional share issue and the completion of its financial recovery process might be postponed due to court battles. Uncertainty with additional shares issue is likely to postpone investments in Dniproenergo, which DTEK was obliged to make in the period of 2008-2012.