Ukraine sells 25% stakes in KIEN, ZAEN for UAH 1.18 bln

At auctions held today, Ukraine’s State Property Fund
sold a 25% stake in Kyivenergo (KIEN UK) to a single bidder at a starting price
of UAH 759.6 mln (USD 29.8 mln base on the current exchange rate). Also, a 25%
stake in power GenCo Zakhidnergo (ZAEN UK) was sold for UAH 417.2 mln (USD 16.4
mln), or 20% higher than the starting price. At the Zakhidnergo auction, there
were two bidders. The names of tender winners was not disclosed, so far.

Alexander Paraschiy: The most
likely winner at the two tenders was SCM Group belonging to Rinat Akhmetov, the
indirect owner of the controlling stakes in the companies via DTEK Energy
(DTEKUA). With the presence of the second bidder, SCM had to pay an additional
UAH 69.6 mln for the Zakhidenergo stake, which is a good achievement for the
State Property Fund. SCM will likely bid for 25% stakes in other DTEK-related
companies, Dniprooblenergo (DNON UK) and Dniproenergo (DNEN UK), which will be
offered on Aug. 31.