Krymenergo 45% stake to be privatized on May 4

Ukraine’s State Property Fund scheduled a privatization auction for a 45% stake in Krymenergo (KREN UK) for May 4, according to an announcement in its newspaper. The starting price for the stake is UAH 246 mln (implying P/E 2011 of 16x). The rules for participation are identical to those of other recent power distribution company auctions: the bidder has to already supply the equivalent of at least 30% of Krymenergo’s power in each of the last three years. The potential winner will be obligated to repay the company’s debts: currently payables amount to UAH 1.3 bln, comparable in size to annual revenue.