Kyiv's New Mayor Initiates Liquidation Of Kievenergoholding.

Kyiv’s newly-elected Mayor Leonid Chernovetskiy has ordered an advisability study of Kievenergoholding and the preparation of the company for liquidation. Kievenergoholding was created in April 2006 by the Kyiv city government and two private companies close to then Mayor, Alexander Omelchenko. The holding consolidates the city’s stakes in Kievenergo (KIEN: BUY), Kievgas, and the water and sewage company Kievvodokanal (KVKL). Concorde Capital: Chernovetskiy’s efforts to liquidate Kievenergoholding have their roots in the conflict between him and the former mayor, who is one of the main beneficiaries of the holding. The status of the holding will not affect KIEN’s ownership structure in general, but the liquidation of the holding would benefit KIEN as separate owners of 13% (Kyiv city) and 27% (private holders) would have less lobbying power than the holding which has a 40% stake.