Donbasenergo schedules EGM for November 7

Shareholders of the recently privatized GenCo Donbasenergo (DOEN UK) will hold an EGM on November 7 to change the company’s supervisory board and audit committee. Among the other items that are listed to be considered by the EGM is the approval of significant deals. Recall on August 21, the State Property Fund of Ukraine sold its 60.8% stake in Donbasenergo to private Energoinvest Holding.

Alexander Paraschiy: The “significant deals” clause theoretically allows minority shareholders to exit Donbasenergo at about UAH 23.3/share, providing the EGM will vote in favor of the deals. Yet we believe the company’s shares are the most promising in terms of their value growth at the local stock exchanges, so we do not recommend using this opportunity to exit. We expect Donbasenergo will become the most generous dividend payer in the local universe next years.