Dniproenergo Announces Buyout Price

According to the head of Dniproenergo’s (DNEN: HOLD) financial recovery board, Dniproenergo will buy back shares of the company for USD 315.2 per share (17% discount to the current market price) from those that vote against the company’s restructuring at an AGM on August 27. Alexander Paraschiy: The buyout price is almost what we estimated (USD 315.1). To be eligible to sell shares, shareholders have to vote against the merger of Investment Company LTD with Dniproenergo, and to apply to sell shares to Dniproenergo within a month of the AGM (if this AGM approves merger). Note that if the August 27 AGM does not hold (e.g. due to a court decision or a presidential decree), the buyout price at next scheduled AGMs (Aug.30 or Sept7) will be slightly higher: USD 317.6.  We do not recommend selling. For more details, refer to our July 23 note.