18 November 2011
The State Property Fund of Ukraine announced yesterday two bids were filed to participate in the November 25 privatization auction of a 25% stake in Kyivenergo (KIEN UK) and only one bid for Zakhidenergo (ZAEN UK). Energy holding DTEK (DTEKUA) filed bids for both companies. Local utility Poltavaoblenergo (POON UK), jointly controlled by Konstantin Grigorishyn and Igor Kolomoyskiy, was the second bidder for Kyivenergo. Aleksander Parashchiy: The privatization auction for Kyivenergo will now go ahead in a week (as there is more than one bidder), but now there will be no auction for the Zakhidenergo stake. Instead, DTEK will be offered the option to buy the Zakhidenergo stake at a price defined by an independent appraiser (but not less than the initial auction price) in the next two months. We believe DTEK, if it accepts the option to buy Zakhidenergo and/or wins the Kyivenergo auction, will offer buyouts to minority shareholders. This could be an excellent exit opportunity from the illiquid stock.