Cabinet extends Centrenergo privatization deadline to 3Q19

Ukraine’s Cabinet ruled on Apr. 10 to extend the placement
deadline of the state’s 78.29% stake in power GenCo Centrenergo (CEEN UK) to
Sept. 30, 2019, Ukrainian News reported the same day. The earlier deadline for
share placement expired on Mar. 31 after Ukraine’s State Property Fund extended
on Mar. 22 the validity of the valuation of the state’s stake (UAH 5.98 bln) to
end-September, according to explanatory documents for the government’s
resolution.

Recall, the tender to privatize Centrenergo at a
starting price of UAH 5.98 bln, scheduled for Dec. 13, 2018, failed to take place as two
registered contenders were disqualified for supplying incomplete info packages.
The plan to privatize Centrenergo was mentioned in Ukraine’s recent memorandum
with the IMF, with no strong commitments taken by the government.

Alexander Paraschiy: In our view, the starting price of UAH 5.98 bln for the 78.3% stake in
Centrenergo looks high, which limits the circle of potential tender
participants. That said, we see a low probability to sell the stake by
end-September. Most likely, the deadline for the deal will be postponed again.