Government Supports Dniproenergo's Additional Share Issue

The government’s decree of June 13 allowed the National Energy Company of Ukraine (NC ECU) to vote in favor of the additional share issue of power generation company Dniproenergo (DNEN: HOLD), and also to reduce its stake in Dniproenergo (currently 76.04%) to 50%+1. The additional share issue was proposed as part of Dniproenergo’s financial recovery plan, and would increase the company’s charter fund by UAH 51.1 mln (USD 10.12 mln) or by 52.07%. Alexander Paraschiy: The main expected outcome of the additional share issue for Dniproenergo is its partial privatization: most likely, the state (NC ECU) will not subscribe for the additional share issue so its stake in Dniproenergo will decrease to 50%+1. The most probable buyer of the state’s share of the additional subscription is the Donbass Fuel and Energy Company.