SPF sold 27% of Lvivoblenergo

Today the State Property Fund of Ukraine managed to sell 26.98% stake in Lvivoblenergo (LVON) for UAH 197.9 mln, which is a 15% premium to the starting price. Deal-based EV/Sales multiple is 0.68. The winner of the tender is Tekt-Trade, which declares itself as a portfolio investor. Alexander Paraschiy: It is still not clear whether the buyer was acting on its own initiative or on behalf of a strategic investor (Grigorishyn?). In any case, successful deal reveals existing demand for Oblenergo stocks at low price: note that LVON’s starting price-based EV/S is 1.7x smaller than for POON tender and 2.7x less than for PREN tender. We think that there is now a higher probability that a tender for Chernihivoblenergo (CHEON) scheduled for May 14, 2009 will be successful.