Donbass Fuel & Energy Company Bought 9.16% Of Energougol

The founder of energy distribution company “EGE Energougol” has sold its stake in the company to Donbass Fuel and Energy Company (DFEC), controlled by SCM. Now SCM and DFEC control about 60.5% of EGE Energougol. Concorde Capital: EGE Energougol is the third largest electricity supplier in the Donetsk region (7% of electricity supply). With the latter acquisition, DFEC has increased its control and secured itself from the conflicts with the founder of the company, which were an issue in 2004-2005. This corporate action is in line with our view we stated earlier that SCM will buy out as much as possible in energy sector to consolidate assets for the planned IPO they announced in February.