SPFU Fails To Block Capital Increases At Two GOKs

This morning a court revoked the State Property Fund?s appeal to suspend decisions by Centralny GOK’s (CGOK: BUY) and Severny GOK’s (SGOK: BUY) AGMs to increase their capital funds. The new government believes the privatization of these plants was illegal. All these GOKs, with the exception of YGOK, are on the government’s list of 29 companies subject to revision of privatization results. Concorde Capital: The market has not been efficient in pricing shares for GOKs, as it is not certain how many shares there are. However, as there is a significant discount relative to the share?s fair values, this has not been a crucial factor in pricing. A court decisions on Yuzhny GOK (YGOK: BUY) and Sukha Balka (SUBA: BUY) is expected later.