11 October 2011
The European Bank of Reconstruction and Development is willing to take part in the privatization of Ukrainian electricity generation companies by means of providing financing for bidders, EBRD Managing Director for Energy Riccardo Puliti said last week in an interview with Zerkalo Nedeli. Last week Ukraine’s State Property Fund scheduled privatization auctions for Zakhidenergo (UX: ZAEN UK, HOLD) and Kyivenergo (UX: KIEN UK, N/R) for November 25; the starting price of 45.1% stake in Zakhidenergo was set at UAH 335 per share and 25% stake in Kyivenergo at UAH 16 per share. Antonina Davydenko: We do not think the EBRD will participate in the privatization of Zakhidenergo or Kyivenergo given that the operational control of the two companies is concentrated with DTEK. The announcement is potentially positive for Centrenergo (UX: CEEN UK, BUY) and Donbasenergo (UX: DOEN UK, BUY), which we expect could be sold by the state in 2012-2013.