SPF appoints appraiser for 25% of Dniproenergo

Ukraine’s State Property Fund of Ukraine selected an independent appraiser to evaluate a 25% stake in Dniproenergo (DNEN UK). The only bidder for the stake, DTEK (DTEKUA), offered UAH 1.17 bln for it on January 11 at a privatization auction. After the evaluation is done (the appraiser has 30 days), DTEK will be offered the stake at the bid or appraisal price, whatever is larger. Following one-contender valuations of Zakhidenergo (ZAEN UK) and Ukrtelecom (UTLM UK) in 2011-2012, we believe the deal price will not exceed the bid by more than 1%.