DTEK acquires 25% stake in Dniproenergo for USD 148

DTEK (DTEKUA) will acquire a 25% interest in Dniproenergo (DNEN UK), Ukraine’s second largest thermal power producer, for USD 148 mln. The acquisition price, set by an independent appraiser and announced yesterday, was less than 0.5% above DTEK’s bid in a privatization auction in January 2012. An independent appraisal was required because DTEK was the only bidder at the auction. With the Dniproenergo deal closed, which increases DTEK’s stake in the company to 72.55%, DTEK will hold controlling stakes in power generation companies that jointly produce 28% of the total electricity output in Ukraine and 66% of electricity output from Ukraine’s thermal power plants.