Dniproenergo Changes Registrar: Risk that Mar. 27 AGM will be cancelled

According to Ukrainian News, Dniproenergo’s (DNEN: HOLD) board of directors has cancelled an agreement retaining the company’s share registrar, Ukrnaftogaz, and signed a new agreement with Prominvestbank. The reason being that the State Securities and Exchange Commission cancelled Ukrnaftogaz’s registrar license. At the moment, registrar status has not been passed to Prominvestbank. The board had previously cancelled Dniproenergo’s AGM scheduled for today. Alexander Paraschiy: A conflict between Dniproenergo and its registrar, Ukrnaftogaz, became visible after Ukrnaftogaz declined to register the new issue of Dniproenergo shares, as approved at its AGM in August 2007. Dniproenergo blames Ukrnaftogaz for supporting the position of Privat group, which officially opposed the additional share issue. Dniproenergo increased its charter fund in 4Q07, but this increase was not backed by new shares. We see a high risk that Dniproenergo’s AGM, scheduled for March 27, will not take place due to uncertainty with its registrar and questions about the company’s de jure number of shares.