Property Fund announces Zakhidenergo and Kyivenergo privatization conditions
4 October 2011
Ukraine’s State Property Fund announced privatization auction conditions for Zakhidenergo (UX: ZAEN UK, HOLD) and Kyivenergo (UX: KIEN UK, N/R), according to an announcement on the Cabinet of Ministers website on Monday. The announcements restricted bidders from having 25% or larger ownership directly or indirectly by any government. It also dictated that auction winners would not be able to change share capital of the company for five years without prior agreement of the SPF and must repay state guaranteed loans. By July 2012, Zakhidenergo’s bidder must develop a modernization plan until 2016 in accordance with ENTSO-E requirements (European Network of Transmission System Operators for Electricity). On September 22, the SPF announced the starting price for its 45.1% stake in Zakhidenergo at UAH 335 per share and 25% stake in Kyivenergo at UAH 16 per share. Antonina Davydenko: Following yesterday’s announcement, we expect the privatization auctions to take place 75 days after official publication in the SPF’s newspaper, which implies dates of around December 19, 2011.
