29 September 2011
Ukraine’s State Property Fund delayed the announcement of privatization auctions for a 45.103% stake in Zakhidenergo (UX: ZAEN UK, HOLD) and 25% of Kyivenergo (UX: KIEN UK, N/R) by one week until October 5, SPF officials said yesterday, without specifying a reason for the delay. Yegor Samusenko: If no there are no further delays, the auction itself should take place around December 19, 2011, 75 days after the publication. We expect only one bidder: DTEK, a minority shareholder in both companies. If indeed there is only one bidder, a special procedure would need to be followed, which requires an additional 1.0-1.5 months for an independent valuation of the stakes and an official offer to the bidder, as was the case earlier this year with Ukrtelecom (UX: UTLM UK, BUY). Under this scenario, privatization of Zakhidenergo could be finalized in February 2012, with the government receiving proceeds, which we expect to be close to the starting prices, in March-May 2012.