13 August 2010
Yesterday Ukraine’s State Property Fund announced details for the privatization auction of Prykarpatoblenergo (UX: PREN UK) on August 17. The SPF plans to sell the 25% stake as one block for a starting price of UAH 3.33 per share (UAH 86.3 mln or USD 10.9 mln). Yegor Samusenko: This starting price implies a valuation of 0.21x on EV/RAB (the Russian peer median is 0.47x) and 2.8x on 2011E EV/EBITDA (Russian peer median is 4.8x), which makes PREN the cheapest Oblenergo to be offered for sale this summer.
Valuation at auction starting price MCap, EV, EV/EBITDA EV/RAB EV/Electricity
USD mln USD mln 2010E 2011E 2010E USD per kWh
Poltavaoblenergo 77 85 4.8 3.6 0.30 16.0
Prykarpatoblenergo 44 44 3.6 2.8 0.21 20.81
Sumyoblenergo 55 56 5.6 4.3 0.25 26.8
Source: State Property Fund, Concorde Capital calculations