Kievenergoholding To Control Kievenergo?

The newly created “municipal” company Kievenergoholding wants to increase its stake in Kievenergo (KIEN: BUY). Now it controls the Kyiv city government’s stakes in Kievvodokanal, Kievgas, a 13% municipal stake in KIEN, and a 27% private stake in KIEN. Kievenergoholding announced their plans to increase their stake in KIEN by buying the company’s free float. In the long-run, they expect to agree with the government to buy the state’s 50%+1 block in KIEN. Concorde Capital: With the change of Kyiv’s mayor, the idea of a municipal utility holding may be revisited, thus the future of Kievenergoholding does not to bright. In addition, it is unlikely that the Kyiv city government would be allowed to operate KIEN’s 50%+1 stake which is now controlled by the National Energy Company. Thus, we do not treat Kievenergoholding’s plan seriously with respect to KIEN. Still, we can expect an increase of buying of KIEN’s shares on the stock market.